Dalradian Resources Inc. a Mineral Resource Estimate

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DALRADIAN RESOURCES INC.

A MINERAL RESOURCE ESTIMATE FOR THE CURRAGHINALT GOLD DEPOSIT AND A REVIEW OF A PROPOSED EXPLORATION PROGRAM FOR THE TYRONE PROJECT, COUNTY TYRONE AND COUNTY LONDONDERRY, NORTHERN IRELAND

MAY 10, 2010

B. TERRENCE HENNESSEY, P.GEO. DIBYA KANTI MUKHOPADHYAY, M.SC., MAusIMM

SUITE 900 - 390 BAY STREET, TORONTO ONTARIO, CANADA M5H 2Y2 Telephone (1) (416) 362-5135 Fax (1) (416) 362 5763

Table of Contents Page

1.0 SUMMARY ...... 1

2.0 INTRODUCTION AND TERMS OF REFERENCE ...... 8 2.1 ACKNOWLEDGEMENTS ...... 9 2.2 UNITS OF MEASURE, ABBREVIATIONS AND NOMENCLATURE ...... 9

3.0 RELIANCE ON OTHER EXPERTS ...... 11

4.0 PROPERTY DESCRIPTION AND LOCATION ...... 13 4.1 LOCATION ...... 13 4.2 DECRIPTION ...... 13 4.3 LOCATION OF MINERALIZED ZONES ...... 17 4.4 PERMITS ...... 19 4.5 ENVIRONMENTAL CONSIDERATIONS ...... 19

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...... 21

6.0 HISTORY ...... 23 6.1 ACQUISITION HISTORY ...... 23 6.2 EXPLORATION HISTORY ...... 24 6.3 HISTORICAL MINERAL RESOURCE ESTIMATE ...... 29 6.4 HISTORICAL PRODUCTION ...... 30

7.0 GEOLOGICAL SETTING ...... 31 7.1 REGIONAL GEOLOGY ...... 31 7.2 PROPERTY GEOLOGY ...... 33 7.2.1 Curraghinalt Gold Deposit Area - Licence DG1...... 33 7.2.2 Tyrone Volcanic Group - Licence DG2 ...... 37 7.2.3 DG3 and DG4 Licences ...... 39

8.0 DEPOSIT TYPES ...... 46 8.1 THE CURRAGHINALT DEPOSIT ...... 46 8.2 THE TYRONE VOLCANIC GROUP ...... 46

9.0 MINERALIZATION ...... 48 9.1 THE CURRAGHINALT DEPOSIT ...... 48 9.2 THE TYRONE VOLCANIC GROUP ...... 50

10.0 EXPLORATION ...... 54 10.1 TOURNIGAN EXPLORATION, 2003 - JANUARY, 2005 ...... 54 10.1.1 Geochemical Sampling ...... 54 10.1.2 Geophysics ...... 54 10.1.3 Geology ...... 54

10.2 TOURNIGAN EXPLORATION FROM JANUARY, 2005 ...... 55 10.3 TOURNIGAN EXPLORATION 2007 TO 2009 ...... 56 10.4 DALRADIAN RESOURCES EXPLORATION ...... 58

11.0 DRILLING ...... 59 11.1 TOURNIGAN DRILL PROGRAMS ...... 59 11.2 GEOLOGICAL LOGGING OF CORE ...... 62

12.0 SAMPLING METHOD AND APPROACH ...... 64

13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 66 13.1 SAMPLE ANALYSES ...... 66 13.2 SAMPLE SECURITY ...... 67 13.3 QUALITY CONTROL AND QUALITY ASSURANCE ...... 67 13.3.1 Blanks ...... 68 13.3.2 Standard Samples ...... 69 13.3.3 Duplicate Samples ...... 74 13.4 SPECIFIC GRAVITY DETERMINATIONS ...... 77

14.0 DATA VERIFICATION ...... 79

15.0 ADJACENT PROPERTIES ...... 81

16.0 MINERAL PROCESSING AND METALLURGICAL TESTING ...... 82 16.1 METALLURGICAL TEST RESULTS ...... 82

17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ...... 84 17.1 MICON MINERAL RESOURCE ESTIMATE ...... 84 17.2 GEOLOGICAL MODEL ...... 84 17.2.1 Basic Statistics ...... 86 17.2.2 Raw Assay Intervals ...... 92 17.2.3 Compositing ...... 97 17.3 GRADE INTERPOLATION METHOD ...... 98 17.3.1 Estimation Parameters and Search Distances ...... 98 17.4 BLOCK MODEL ...... 101 17.5 BLOCK MODEL VALIDATION ...... 101 17.6 MINERAL RESOURCE CLASSIFICATION ...... 105 17.7 MINERAL RESOURCE ESTIMATES ...... 111 17.8 MINERAL RESERVES ...... 113

18.0 OTHER RELEVANT DATA AND INFORMATION ...... 114

19.0 INTERPRETATION AND CONCLUSIONS ...... 115

20.0 RECOMMENDATIONS ...... 117 20.1 PROPOSED EXPLORATION PROGRAM AND BUDGET ...... 117 20.1.1 Curraghinalt Deposit Exploration ...... 117

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20.1.2 DG1 Licence Exploration ...... 118 20.1.3 DG2 Licence Exploration ...... 120 20.1.4 DG3 and DG4 Licence Exploration ...... 120 20.1.5 Summary ...... 121 20.2 SUMMARY RECOMMENDATIONS ...... 122

21.0 REFERENCES ...... 123

22.0 APPENDICES ...... 129

Appendix 1 Drill Hole Statistics for the Mineralized Intersections and Zone Codes

Appendix 2 Block Model Validation Comparison Plots for Drill Hole Data to Resource Model Block Grades

List of Tables Page

Table 1.1 Classified Mineral Resource Estimate at 5 g/t Gold Cut-off and 0.1 m Minimum Width...... 5 Table 1.2 Exploration Program Summary...... 6 Table 2.1 List of Abbreviations ...... 10 Table 4.1 Licence Details ...... 15 Table 4.2 Licence Expenditures ...... 16 Table 4.3 Expenditure Commitments ...... 16 Table 6.1 Summary of Polygonal Mineral Resource Estimate, 1997 ...... 30 Table 7.1 Definitions for Geometry of the Vein System ...... 35 Table 7.2 Correlation of Dalradian rocks in Scotland and Northern Ireland ...... 40 Table 11.1 Summary of Drilling by Year ...... 59 Table 11.2 Summary of Drilling 2005-2007 ...... 60 Table 11.3 Summary of Post 2007-Resource-Estimate Drilling ...... 62 Table 12.1 Drill Set-up, Sampling Procedures and Controls ...... 65 Table 13.1 OMAC Laboratory Assay Procedures ...... 66 Table 13.2 Details of Quality Assurance/Quality Control Samples...... 68 Table 13.3 Certified Value of CDN Resource Standard Samples...... 70 Table 13.4 Analyzed Value of CDN Resource Standard Samples ...... 70

Table 13.5 Statistics of the Samples Analyzed by Ennex and External Laboratories ...... 75 Table 13.6 Specific Gravity Determinations ...... 77 Table 13.7 Mean Specific Gravity and Standard Deviation of Measurements for Major Veins ...... 78 Table 14.1 Micon Check Samples...... 79 Table 17.1 Previous and Present Codes Used for Mineralized Zones ...... 84 Table 17.2 Mineralized Zones and Codes ...... 85 Table 17.3 Classical Statistics for the Mineralized Zones for Raw Assays for Gold...... 87 Table 17.4 Classical Statistics for the Mineralized Zones for Capped Assays for Gold...... 88 Table 17.5 Classical Statistics for the Mineralized Zones for Composited Assays for Gold ...... 89 Table 17.6 Classical Statistics for the Mineralized Zones for Composited Assays for Linear Metal Accumulation ...... 90 Table 17.7 Classical Statistics for the Mineralized Zones for Estimated Blocks for Gold...... 91 Table 17.8 Classical Statistics for the Mineralized Zones for Estimated Blocks for Linear Metal Accumulation ...... 92 Table 17.9 Gold Capping for Different Zones ...... 93 Table 17.10 Number of Samples Affected by Capping and the Percentile at Which Capping is Applied ...... 93 Table 17.11 Summary of Search Volume Reference Number, Estimation Method and Zone...... 99 Table 17.12 Summary of Search Volume Reference Number, Direction and Angle of Rotation ...... 100 Table 17.13 Summary of Search Parameters ...... 100 Table 17.14 Block Model Parameters ...... 101 Table 17.15 Mineral Resource Estimate at Different Grade and Thickness Cut-offs ...... 110 Table 17.16 Mineral Resource Estimate at Different 5.0 g/t Au Cut-off Grades With Different Vein Thickness ...... 111 Table 17.17 Classified Mineral Resource Estimate at 5 g/t Gold Cut-off and 0.1 m Minimum Width...... 112 Table 19.1 Classified Mineral Resource Estimate at 5 g/t Gold Cu-off and 0.1 m Minimum Width...... 115

Table 20.1 Curraghinalt Deposit Exploration Program ...... 118 Table 20.2 Remainder of DG1 Exploration Program ...... 120 Table 20.3 DG2 Exploration Program ...... 120 Table 20.4 DG3 Exploration Program ...... 121 Table 20.5 DG4 Exploration Program ...... 121 Table 20.6 Exploration Program Summary...... 121

List of Figures Page

Figure 1.1 General Location Map...... 2 Figure 4.1 General Location Map...... 13 Figure 4.2 Curraghinalt Gold Deposit Location ...... 18 Figure 4.3 Locations of Principal Veins and Adit, DG1 (UM-1/02) ...... 18 Figure 5.1 Tyrone Project Licence Map, Road Access and Drainages ...... 21 Figure 5.2 General View of the Curraghinalt Deposit Area Looking South ...... 22 Figure 6.1 Ennex Drilling at Curraghinalt ...... 26 Figure 6.2 Ennex Trenching at Curraghinalt ...... 26 Figure 6.3 Cashel Rock Drill Section 380000N ...... 27 Figure 6.4 Cashel Rock Drill Section 380060N ...... 28 Figure 6.5 Cashel Rock Drill Section 380100N ...... 28 Figure 6.6 Cashel Rock Drill Section 380150N ...... 29 Figure 7.1 Regional Geology of Northern Ireland ...... 32 Figure 7.2 Local Geology in the Area of Curraghinalt ...... 33 Figure 7.3 Plan of Curraghinalt Vein System on Level 170 ...... 35 Figure 7.4 Appalachian Correlations ...... 39 Figure 7.5 Simplified Geological Map of the Project Area ...... 45 Figure 8.1 Mineralization Models and Target Types on DG1 ...... 47 Figure 9.1 Tyrone Volcanic Group Mineralized Locations ...... 51 Figure 10.1 Location of Holes Drilled by Tournigan ...... 56 Figure 11.1 North-South Schematic Section at 257000 E, Looking West ...... 61 Figure 11.2 Quartz Sulphide Vein in Drill Core ...... 63

Figure 13.1 Results for Blanks Analyzed by Ennex Laboratory ...... 69 Figure 13.2 Error Plot for the Standard Samples Used by OMAC ...... 70 Figure 13.3 Repeatability by OMAC on Reference Material (3.4 g/t Au) ...... 71 Figure 13.4 Repeatability by OMAC on Reference Material (5.1 g/t Au) ...... 71 Figure 13.5 Repeatability by OMAC on Reference Material (7.47 g/t Au) ...... 72 Figure 13.6 Repeatability by OMAC on Reference Material (9.98 g/t Au) ...... 72 Figure 13.7 Repeatability by OMAC on Reference Material (15.31 g/t Au) ...... 73 Figure 13.8 Repeatability by OMAC on Reference Material (20.6 g/t Au) ...... 73 Figure 13.9 Scatter Plot Between Original and Re-submitted Samples ...... 74 Figure 13.10 Error Plot for Gold Assays ...... 75 Figure 13.11 Scatter Plot for Comparison of Assays Between Ennex Laboratory and OMAC ...... 76 Figure 13.12 Scatter Plot for Comparison of Assays Between Ennex Laboratory and ALS Chemex ...... 76 Figure 13.13 Plot of Gold Grade and Specific Gravity ...... 78 Figure 17.1 Typical Geological Section for the Curraghinalt Area ...... 85 Figure 17.2 Schematic 3D Disposition of Different Mineralized Zones for the Curraghinalt Area...... 86 Figure 17.3 Probability Plot for Zone 30 of Curraghinalt Area ...... 94 Figure 17.4 Probability Plot for Zone 40 of Curraghinalt Area ...... 94 Figure 17.5 Probability Plot for Zone 45 of Curraghinalt Area ...... 95 Figure 17.6 Probability Plot for Zone 50 of Curraghinalt Area ...... 95 Figure 17.7 Probability Plot for Zone 60 of Curraghinalt Area ...... 96 Figure 17.8 Probability Plot for Zone 70 of Curraghinalt Area ...... 96 Figure 17.9 Probability Plot for Zone 75 of Curraghinalt Area ...... 97 Figure 17.10 Scatter Plot Comparing Capped Mean and Composited Mean for Each Zone ...... 98 Figure 17.11 North-south Cross-section Showing Block Model Grades for Mineralized Zones for Curraghinalt Area ...... 102 Figure 17.12 Plan View at 170 m RL of the Block Model Categorized into Different Grades for Curraghinalt Area ...... 102 Figure 17.13 Schematic 3D Rendering of Block Model Categorized into Different Grades for Curraghinalt Area...... 103

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Figure 17.14 Comparison of Composited to Estimated Mean of Gold Grade for Each Zone ...... 103 Figure 17.15 Comparison of Composited to Estimated Mean of Linear Metal Accumulation for Each Zone ...... 104 Figure 17.16 Comparison of De-clustered Drill Hole Data with Resource Model Block Grade for Curraghinalt Area ...... 105 Figure 17.17 Vertical Longitudinal Projection of Vein 70 ...... 106 Figure 17.18 North-south Cross-Section Looking Showing Resource Classifications for Curraghinalt Area ...... 107 Figure 17.19 Plan View at 170 m RL Showing Resource Classifications for the Curraghinalt Area...... 107 Figure 17.20 Schematic 3D View of the Block Model for the Curraghinalt Area ...... 108 Figure 17.21 Grade-Tonnage Distribution of the Indicated Mineral Resource at Different Thickness Cut-off ...... 109 Figure 17.22 Grade-Tonnage Distribution of the Inferred Mineral Resource at Different Thickness Cut-off ...... 109 Figure 17.23 3-D View of Vein 70 with a grade cut-off of 5 g/t ...... 112 Figure 20.1 Curraghinalt Deposit Drilling Areas ...... 119

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1.0 SUMMARY

At the request of Dalradian Resources Inc. (Dalradian Resources), Micon International Limited (Micon) has prepared an updated Mineral Resource Estimate and an independent Technical Report, compliant with the reporting standards and definitions required under Canadian National Instrument 43-101 (NI 43-101), for the company’s Curraghinalt gold deposit at the Tyrone project in County Tyrone, Northern Ireland. In addition Micon has reviewed and opined on a proposed exploration program for the remainder of the Tyrone Project. The Tyrone project is indirectly held by Dalradian Resources through a wholly- owned subsidiary Dalradian Gold Limited (Dalradian Gold), in whose name the licences are registered.

The scope of work included a review of the geology, mineralization model and exploration programs for the Curraghinalt deposit. Drill hole data compilation and quality assurance/ quality control protocols, which form the foundation for the resource estimate, were also reviewed in detail. Much of this work had been completed by Micon in 2007 for Tournigan Gold Corporation (now Tournigan Energy Ltd., Tournigan), the previous operator of the project. It was updated for this report.

The Tyrone Project is located in County Tyrone and County Londonderry, Northern Ireland. The Curraghinalt gold deposit, located near the centre of the property in County Tyrone is approximately 127 km west of Belfast by road and 15 km northeast of the town of Omagh. Access to the Curraghinalt deposit is via a number of paved highways and local roads. These include the Killyclogher Road which runs northeast from Omagh and the Strabane Road (B48) which runs northwest from Omagh to Strabane. Private roads and farm tracks provide access within the property.

In Northern Ireland DETI is responsible for the grant of prospecting licences and mining licences for the exploration and development of minerals. Dalradian Resources, through its subsidiary Dalradian Gold, presently has the benefit of the following DETI prospecting licences: DG1/08, DG2/08, DG3/09 and DG4/09.

The CEC are responsible for the licensing of precious metal exploration. Dalradian Resources, through its subsidiary Dalradian Gold, also has the benefit of the following CEC prospecting licences: DG1, DG2, TG-3 and TG-4. (It should be noted that any reference to "TG-3" and "TG-4" rather than to "DG3" and "DG4" is a hangover from the previous ownership by Tournigan Gold (hence "TG") and has no practical bearing or significance.)

The 4 DETI licences correspond to the 4 CEC licences thereby granting base and precious metal mineral exploration rights to four contiguous pieces of ground. The licences cover a total area of some 844 km2. (See Figure 1.1.)

Figure 1.1 General Location Map

Map provided by Aurum.

The four pieces of property are often referred to simply as DG1, DG2, DG3 and DG4 or DG- 1, DG-2, DG-3 and DG-4 (with or without hyphens). In this report they shall be referred to as DG1, DG2, DG3 and DG4 although some figures provided herein show them as DG-1, DG-2, DG-3 and DG-4.

The approximate centre of the two most important licence areas, DG1 and DG2, is located at latitude 54o41’24” north and longitude 7o04’09” west.

The mineral exploration rights are owned by a former Tournigan subsidiary, Dalradian Gold, which was acquired by Dalradian Resources in a transaction dated September 28, 2009. They are renewable, subject to certain requirements, for two-year periods from the date of issue and must have biennial reports submitted to the licensing authorities. At the end of 6 years (provided that it has endured that long), the licence is not continued; rather, a fresh licence must be issued. Dalradian Gold had previously provided the two-year renewal reports in support of the licences and reapplied for the six-year reissue in 2008 and 2009. DG1 and DG2 are valid until January 1, 2014 (subject to the biennial renewal requirements). DG3 and DG4 are valid until April 23, 2015 (subject to the biennial renewal requirements).

Renewals, extensions and reissuing are not automatic. They are subject to a number of provisos and conditions being met.

The Tyrone property contains mesothermal gold mineralization, with gold disseminated in quartz-sulphide veins, at the Curraghinalt deposit on licence DG1. The general strike direction of the quartz sulphide veins is approximately west-northwest and the dip is approximately 60º to 70º to the north. Additionally, on licence DG2, are known occurrences of gold mineralization in silicified rhyolite breccias, and porphyry-style copper mineralization. It has also been postulated that the DG2 licence is a potential host for volcanogenic massive sulphide (VMS) style mineralization due to stratigraphic correlations with mineral belts in Newfoundland and Scandinavia.

The geological history of the project area and the immediate surrounding area is related to the closing of the Iapetus Ocean in Ordovician time.

The Curraghinalt deposit is located 3 km to the north of the northeast-southwest striking Omagh Thrust Fault. This major fault has thrust Dalradian Supergroup rocks from the northwest over the Ordovician-aged Tyrone Volcanic Group (TVG) rocks located to the south. The Dalradian metasediments on the northern side of the thrust strike northeast- southwest and dip to the northwest. The lithologies are interpreted to lie on the lower limb of a gently to moderately northwest dipping, southeast upward-facing, major recumbent isoclinal fold, referred to as the Sperrin over fold or the Sperrin Nappe.

The Dalradian stratigraphy in the DG1 licence area is inverted, occupying the lower limb of the overturned Sperrin Nappe. The Dalradian formations present in the deposit area, from the southeast (at the Omagh Thrust) to the northwest are, from the youngest to the oldest, the Mullaghcarn, Glengawna and Glenelly Formations. The Mullaghcarn Formation, which hosts the Curraghinalt deposit, consists of mixed semi-pelites, quartz semi-pelites and psammites. The Glengawna Formation comprises a mixed package of graphitic pelites, graphitic semi-pelites, chloritic semi-pelites and minor psammites. Furthest north on licence DG1 is the Glenelly Formation, which is comprised of pelites, semi-pelites and quartz semi- pelites. Further to the north on licences DG3 and DG4 lie more clastic sediments and limestones of the Dalradian along with a small area of unconformable Carboniferous sandstone.

Mineralized vein structures at the Curraghinalt deposit represent composite veins that have been developed over time by four distinct periods of quartz injection and sulphide-rich hydrothermal fluids. Mineralized veins are best developed in the relatively brittle semi- pelites and psammites, rather than in the more ductile pelitic horizons. Barren quartz veins represent, for the most part, the first stage of quartz injection that was essentially barren in gold. These veins are generally quite narrow, typically occur generally in pelite units, and fill the available shear, thus effectively sealing the shear for later stage gold-bearing quartz injection. Available evidence suggests that the hosting structures for these veins, or parallel ones, may strike onto the DG3 and DG4 licences.

The upper part of the TVG is comprised of bimodal sequences of basaltic and andesitic to rhyolitic submarine and subaerial lavas, volcaniclastics with chert horizons and intercalations of graptolitic shales. These lithologies are preceded by submarine basaltic andesite pillow lavas and associated intrusives. A series of porphyry bodies and a series of calc-alkaline granitic intrusions intrude the volcano-sedimentary sequence.

Work by Earls (1987) suggests the presence of three island arc volcanic cycles favourable for VMS deposits, adjacent to the back arc basal ophiolites, within the TVG on licence DG2. These cycles are designated from top to bottom as Cycle 3, the Broughderg Formation, Cycle 2, the Bonnety Bush-Glencurry Formation and Cycle 1 the Dungate-Tanderagee Formation. The tops of each cycle are marked by an erratic increase in volumetrically minor chert or ironstone, which is taken to represent the culmination of a cycle.

The DG1 and DG2 licence areas were acquired initially, in 1983, by Ulster Minerals Limited (Ulster Minerals) which had been established as a wholly-owned subsidiary of Ennex International plc (Ennex). Ennex conducted exploration on the property between 1983 and 1999. Ennex sold its interest in Ulster Minerals to Nickelodeon Minerals Inc. (Nickelodeon) in January, 2000. In August, 2000, the name of Nickelodeon was changed to Strongbow Resources Inc. and, subsequently, to Strongbow Exploration Inc. (Strongbow).

In February, 2003, Tournigan entered into an option agreement with Strongbow to earn an interest of up to 100% in the Curraghinalt deposit. At the same time, Tournigan entered into a similar option agreement with Strongbow in respect of their “Tyrone project” in the TVG. Tournigan established Dalradian Gold as a wholly-owned subsidiary through which it would earn its interests in the Curraghinalt and Tyrone properties which were subsequently converted to licences UM-1/02 and UM-2/02.

In the following year (February, 2004), Tournigan entered into a letter agreement with Strongbow for the outright purchase by Tournigan of all of the issued and outstanding shares of Ulster Minerals. A net smelter royalty of 2% held by Ennex was transferred to Minco plc. Full transfer of ownership in Ulster Minerals to Tournigan was completed in December, 2004.

During this period, Tournigan also applied for and received the licences which later became DG3 and DG4. As well, licences UM-1/02 and UM-2/02 were converted in name to licences DG1 and DG2 and their internal boundary was moved to reflect the location of the Omagh Thrust, the boundary between the Dalradian metasediments and the TVG.

As described above, in September, 2009, Dalradian Resources entered into an agreement with Tournigan to purchase Dalradian Gold and all of its Northern Ireland assets.

Very little is known about the exploration history on the property or the history of gold exploration in the area prior to the work of Ennex in 1983. Gold was recognized in the gravels of the Moyola River as early as 1652 and, in the 1930s, an English company reported plans for alluvial gold mining in a prospectus, but very little work appears to have occurred.

Due to the relatively advanced stage of historical exploration completed at the Curraghinalt deposit by the previous operators of the property, Tournigan initially moved directly to infill and deeper drilling and did not undertake any significant mapping, surface sampling or additional detailed geochemical surveys. Some geophysical surveys had been carried out on a regional scale to delineate drill targets along strike and some prospecting, sampling and mapping, sufficient to retain the other licences, was completed. Tournigan also compiled an extensive database of available historical exploration information and data.

The drill program allowed Tournigan in 2007 to report an indicated mineral resource (at a cut-off grade of 6 g/t Au) of 0.57 million tonnes at an average grade of 13.95 g/t Au (250,000 ounces contained) and an inferred mineral resource of 0.64 million tonnes at an average grade of 17.15 g/t Au (350,000 ounces contained, Mukhopadhyay, 2007). This estimate was performed by Micon. After the resource estimate, and before halting exploration at the deposit, Tournigan completed four more holes to intersect deeper mineralization which were not used to update the resource estimate at the time. Micon has since modified the geological model to take into account the results from these four holes.

In order to conduct the present mineral resource estimate, the mineralized area was divided into different zones with statistical analysis carried out separately on all zones. The resource has been classified following the standards and definitions of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). The mineral resource has been reported at an economic cut-off grade of 5 g/t Au over a minimum thickness of 1 m. All mineralized blocks in the block model which were greater than 0.10 m in thickness were diluted to 1 m at zero grade and reported if they met cut-off. The results are presented in Table 1.1

Table 1.1 Classified Mineral Resource Estimate at 5 g/t Gold Cut-off and 0.1 m Minimum Width

Indicated Resource Inferred Resource Au Metal Au Metal Million Grade Million Grade Million Million Tonnes (g/t) Tonnes Tonnes (g/t) Tonnes Oz Oz 0.95 13.24 0.40 12.57 2.46 14.64 1.16 35.95

The mineral resource estimate is based on exploration data and interpretation available as of November 30, 2009.

To the best knowledge of the authors the stated mineral resources are not materially affected by any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant issues. There are no known mining, metallurgical, infrastructure or other factors that materially affect this mineral resource estimate.

The mineral resource estimate by Dibya Kanti Mukhopadhyay, MAusIMM, is compliant with the current standards and definitions as required under NI 43-101 and is, therefore,

reportable as a mineral resource by Dalradian Resources. However, the reader should be cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability.

There is potential for the conversion of mineral resources from the Inferred and Indicated categories to the Indicated and Measured categories at Curraghinalt. Within the present resource estimate, only the major vein systems have mineral resources classified as Indicated. Relatively little close-spaced drilling has been undertaken on the property and it is Micon’s opinion that there are many sub-veins which have good potential to be brought into the Indicated resource category.

The above mineral resource has been estimated only for the central part of the Curraghinalt deposit. There are sufficient indications, based on preliminary mapping and geochemical sampling, for exploration potential in either direction from the deposit and there is good potential that some of the veins identified in the present study may contribute to future resources. Tournigan’s deep drilling has indicated significant potential down dip at depth. The regional geochemical, mapping and sampling work clearly indicates that there are parallel trends of mineralization in conformity with the Curraghinalt trend in the Dalradian metasediments.

The Curraghinalt gold deposit may be regarded as a mid-stage exploration project on which a reasonably-sized gold mineral resource of good grade has been estimated. Additionally there are other good exploration opportunities on the four licence areas for gold and base metals mineralization (both VMS and porphyry style).

Dalradian Resources, together with Aurum Exploration Services Inc. (Aurum), has designed a program of exploration for the Curraghinalt gold deposit and the remainder of the four mineral licence areas acquired from Tournigan. The program is summarized in Table 1.2. Details for the program, by licence, and with a separate program for the Curraghinalt gold deposit, may be found in Section 20 of this report.

Table 1.2 Exploration Program Summary

Cost Program (£) Curraghinalt deposit exploration 2,653,048 Licence DG1 exploration 883,014 Licence DG2 exploration 480,389 Licence DG3 exploration 80,000 Licence DG4 exploration 80,000 Environmental impact study 600,000 PR, Social and Economic Study 600,000 Management staffing 145,925 Office, admin, rent, etc. 372,480 Contingency (5%) 294,743 Total 6,189,599 Total Canadian Dollars CDN$10,404,097

The budget presented is a base case scenario and may need to change as unforeseen factors in the field become known.

Micon has reviewed the program and finds it to be reasonable and warranted in light of the data presented and observations made in this report. Micon recommends that Dalradian Resources proceed with the program of exploration on the four mineral licence areas. After completion of the proposed drilling at the Curraghinalt deposit Micon also recommends that the company initiate work on a preliminary economic assessment (scoping study) for the deposit.

2.0 INTRODUCTION AND TERMS OF REFERENCE

Dalradian Resources Inc. (Dalradian Resources) has retained Micon International Limited (Micon) to prepare an updated mineral resource estimate for the Curraghinalt gold deposit and an independent Technical Report, in accordance with the reporting standards and definitions required under Canadian National Instrument 43-101 (NI 43-101), on the Tyrone property in Northern Ireland. This report presents the results of the mineral resource estimate, a summary of the project’s geology and exploration potential and a review of a proposed exploration program and budget for the Tyrone project.

Two previous estimates of mineral resources are known to have been completed on the Curraghinalt deposit. The first was prepared by John V. Tully & Associates Inc. (Tully) on behalf of Tournigan Gold Corporation (now Tournigan Energy Ltd., Tournigan). The independent Technical Report for this estimate is dated January 27, 2005 and was filed on SEDAR on March 24, 2005 (Tully, 2005). Since the completion of Tully’s mineral resource estimate, Tournigan undertook further exploration work on the property concentrating on the Curraghinalt deposit.

Micon prepared a second estimate of mineral resources on the Curraghinalt deposit for Tournigan in 2007. This took into account the previous exploration work and 20 additional holes completed since the beginning of 2005. This estimate is described in a Technical report dated November, 2007 (Mukhopadhyay, 2007) which was filed on SEDAR by Tournigan on January 17, 2008. After the database for that estimate was frozen, Tournigan completed four more deep holes on the deposit to test the down plunge extent of those existing resources and then ceased work there. After 2007 a small amount of prospecting and sampling was completed on the rest of the property in order to hold the licences.

Dalradian Resources acquired the Tyrone project in the fall of 2009 and has retained Micon to update its previous resource estimate as part of a Technical Report prepared to support the initial listing of the company on the Toronto Stock Exchange (TSX).

Tournigan’s, and therefore Tully’s and Micon’s, previous work concentrated on the Curraghinalt gold deposit located on concession DG1. There also exists gold and volcanogenic massive sulphide exploration potential on the south side of the Omagh Thrust Fault as well as the potential for along strike continuation of the Curraghinalt deposit mineralization. That potential will also be described herein.

The geological setting of the property, mineralization style and occurrences, and exploration history were described in reports that were prepared by Peatfield (2003), Tully (2005), Williams (2007), Coller (2007) and in various government and other publications listed in the references of this report. The relevant sections of those reports are reproduced herein.

The Tyrone property was visited by B. Terrence Hennessey, P.Geo., Vice President of Micon and based in the firm’s head office in Toronto, Ontario Canada, on November 6 and 7, 2009. Discussions were held with representatives of Aurum Exploration Services Ltd. (Aurum) and

Mr. Patrick Anderson, a director of Dalradian Resources. Aurum provided local project management services on behalf of Tournigan and will provide the same to Dalradian Resources.

The Tyrone property was also visited by Dibya Kanti Mukhopadhyay, MAusIMM, Senior Mineral Resource Geologist with Micon, based in the firm’s office in Norwich, United Kingdom, between August 10 and 12, 2007. Mr. Mukhopadhyay’s visit was in conjunction with the previous resource estimation assignment completed for Tournigan. At that time discussions were held with Joe Ringwald, Vice President, Technical Services, Ravi Sharma, Consulting Manager, Resource and Reserve with Tournigan and with representatives of Aurum.

Mr. Mukhopadhyay’s visit to the Curraghinalt deposit site included field inspection, inspection of three major veins observed in the underground adit on the property, inspection of drill core and discussion of sampling and assay procedures, quality assurance/quality control (QA/QC) procedures and data security. In addition to visiting and reviewing the above, Mr. Hennessey visited the Cashel Rock showing on the DG2 concession and collected selected confirmation samples from underground and surface exposures as well as drill core for check assaying.

Messrs. Mukhopadhyay and Hennessey are Qualified Persons (QP) as defined in NI 43-101.

The present report and mineral resource estimate is based on exploration results and interpretation current as of November, 2009.

This report is intended to be used by Dalradian Resources subject to the terms and conditions of its contract with Micon. That contract permits Dalradian Resources to file this report as an NI 43-101 Technical Report with the Canadian Securities Regulatory Authorities pursuant to provincial securities legislation. Except for the purposes legislated under provincial securities laws, any other use of this report, by any third party, is at that party’s sole risk.

2.1 ACKNOWLEDGEMENTS

Micon acknowledges and appreciates the input of Aurum staff as well as the assistance of representatives of Tournigan who gave permission for the use and disclosure of all prior information related to the Tyrone project for use in preparation of this report. Aurum staff responded openly to all requests for information in regard to the project.

This report is a modified version of a previous report on the Curraghinalt gold deposit prepared by Micon for Tournigan. Tournigan kindly approved of its reuse.

2.2 UNITS OF MEASURE, ABBREVIATIONS AND NOMENCLATURE

Previous operators of the project also referred to the property containing the Curraghinalt deposit as the Curraghinalt property or project and some extracts of text from earlier reports

quoted herein may incorporate this usage. Sections describing historical work will use the property names as employed at the time. Dalradian Resources uses the name Curraghinalt to refer to the Curraghinalt gold deposit found on licence DG1, and the subject of the mineral resource presented herein. The project and property as a whole are referred to by Dalradian Resources as the Tyrone project. Efforts have been made to distinguish the meanings with the deposit typically being called “the Curraghinalt gold deposit” or “the Curraghinalt deposit”. For work planned by Dalradian Resources the four licence areas, in aggregate, are typically referred to as “the Tyrone property” and the project as a whole is referred to as “the Tyrone project”. Individual references to a licence area usually use DG1, DG2, DG3 or DG4, the DETI licence designations (see Section 4).

Unless otherwise indicated, the metric system of measure has been used throughout this report, including metric tons (tonnes, t), kilograms (kg) or grams (g) for weight, kilometres (km) or metres (m) for distance, hectares (ha) for area, litres (L) for volume and grams per tonne for gold (g/t Au) and silver (g/t Ag) grades. Base metal grades are usually expressed in weight percent (%). Geochemical results or precious metal grades may be expressed in parts per million (ppm) or parts per billion (ppb) (1 ppm = 1 g/t). Elevations are given in metres above sea level (masl). Precious metal quantities may also be reported in troy ounces (ounces, oz), a common practice in the mining industry. Currency values may be in Canadian dollars ($CDN), US dollars ($US) or Pounds Sterling (£) as noted. A list of abbreviations used in this report is provided in Table 2.1.

Table 2.1 List of Abbreviations

Description Abbreviation Description Abbreviation Atomic absorption AA Metre(s) m Aurum Exploration Services Ltd. Aurum Metres above sea level masl Canadian Dollars $CDN Micon International Limited Micon Canadian National Instrument 43-101 NI 43-101 Micron(s) µ CDN Resource Laboratories Limited CDN Resource Nickelodeon Minerals Inc. Nickelodeon Centimetre(s) cm OMAC Laboratories OMAC County Co. Ounce(s)/Troy ounce(s) oz Crown Estates Commissioners CEC Parts per billion ppb Dalradian Gold Limited Dalradian Gold Parts per million ppm Degree(s) o Percent % Degrees Centigrade/Celsius oC Qualified Person(s) QP(s) Department of Enterprise, Trade and Investment DETI Quality Assurance/Quality Control QA/QC Ennex International plc Ennex Reduced Level RL Foot/feet ft Rock quality designation RQD Fire Assay FA Silver Ag Geological Survey of Northern Ireland GSNI Specific gravity SG Gold Au Square kilometres km2 Gram(s) g Strongbow Exploration Inc. Strongbow Gram-metres per tonne, metres x grams per tonne gm/t Three-dimensional 3D Grams per tonne g/t Tonnes per cubic metre t/m3 Tournigan Gold Corporation Inch(es) in Tournigan (now Tournigan Energy) John V. Tully & Associates Inc. Tully Two-dimensional 2D Kilometre(s) km Ulster Minerals Limited Ulster Minerals Lead Pb Very low frequency VLF Methyl isobutyl ketone MIBK Volcanogenic massive sulphide deposits VMS

3.0 RELIANCE ON OTHER EXPERTS

Micon has reviewed and analyzed exploration data provided by Dalradian Resources (and Tournigan), its consultants (principally Aurum and Tully) and previous operators of the property, and has drawn its own conclusions therefrom, augmented by its direct field examination. Micon has not carried out any independent exploration work, drilled any holes or carried out any significant program of sampling and assaying.

Copper-bearing pyritic quartz veins are clearly visible in the accessible underground workings at the Curraghinalt deposit. The local presence of gold and copper mineralization has also been substantiated by the independent samples collected by Micon. The independent samples collected by Micon come from drill core and mineralized exposures in the underground workings at the Curraghinalt deposit and from silicified outcrop at the Cashel Rock showing on the DG2 concession.

John Tully of John V. Tully & Associates Inc. was retained by Tournigan to prepare a Technical Report on the property. Tully’s report, entitled Technical Review Report on the Curraghinalt Gold Property, Exploration License UM-1/02 (UM-11/96), County Tyrone, Northern Ireland, is dated January 27, 2005, and was filed on SEDAR on March 24, 2005. (The concession UM-1 has been renamed DG1 prior to its acquisition by Dalradian Resources.) Micon has drawn upon Tully’s report in preparing certain sections of the present report. Based on the site visit of Mr. Mukhopadhyay and his discussions with representatives of Tournigan and Aurum Exploration, Micon believes that the material drawn from Tully’s report is factually correct.

While exercising all reasonable diligence in checking and confirming it, in the preparation of this report, Micon has relied upon data provided by Tournigan, Dalradian Gold Limited (Dalradian Gold, a subsidiary of Tournigan), Dalradian Resources and Aurum, and upon data in the public domain. Micon has not independently verified all of the statements and data contained in historical reports or assay information provided.

The various agreements under which Dalradian Resources holds title to the mineral lands for this project, the nature of any contracts with third parties negotiated to acquire them and the status of the licences at the Tyrone project have not been investigated by Micon. Micon offers no opinion as to the validity of the title claimed by Dalradian Resources. A legal review of agreements and mineral title pertaining to the project is beyond Micon’s expertise and scope of work and Micon expresses no legal opinion herein. The description of the property, and ownership thereof, as set out in this report, is provided for general information purposes only as required by NI 43-101.

The existing environmental conditions, potential liabilities and remediation measures have been discussed in this report as required by NI 43-101. It should be noted, however, that these statements are provided for information purposes only and Micon offers no opinion in this regard.

The conclusions and recommendations in this report reflect the authors’ best judgment in light of the information available at the time of writing. Micon reserves the right, but will not be obliged, to revise this report and conclusions if additional information becomes known to it subsequent to the date of this report. Use of this report acknowledges acceptance of the foregoing conditions.

4.0 PROPERTY DESCRIPTION AND LOCATION

4.1 LOCATION

The Tyrone property is located in County Tyrone and County Londonderry, Northern Ireland. The Curraghinalt gold deposit is found on the property, approximately 75 km west of Belfast and 15 km northeast of the town of Omagh. The property is accessible by paved road, a distance of approximately 127 km from Belfast. See Figure 4.1.

Figure 4.1 General Location Map

Map provided by Aurum.

4.2 DECRIPTION

The relevant property is the subject of eight Mineral Prospecting Licences, with four issued by the Department of Enterprise, Trade and Investment (DETI) and four issued by the Crown Estate Commissioners (CEC). The Mineral Development Act (Northern Ireland) 1969 makes DETI responsible for the grant of prospecting licences and mining licences for exploration and development of minerals. The CEC is responsible for the licensing of precious metal exploration. DETI notes:

“Prospecting licences for precious metals are issued by the Crown Estate Commissioners (CEC) and companies wishing to explore for precious metals should apply simultaneously to the CEC and the Department for licences. Once the Department issues its licence, CEC will normally issue a concurrent licence for a conterminous area.” (DETI, Minerals and Petroleum Exploration and Development in Northern Ireland 1997-2000).

Dalradian Resources, through its subsidiary Dalradian Gold, presently has the benefit of the following DETI prospecting licences: DG1/08, DG2/08, DG3/09 and DG4/09. In addition the company, through Dalradian Gold, has the benefit of the following CEC prospecting licences: DG1, DG2, TG-3 and TG-4. (It should be noted that any reference to "TG-3" and "TG-4" rather than to "DG3" and "DG4" is a hangover from the previous ownership by Tournigan Gold (hence "TG") and has no practical bearing or significance.)

The properties which are the subject of licences DG1 and DG2 were earlier controlled by Tournigan under a joint venture agreement with Ulster Minerals. They were previously called UM-1/02 and UM-2/02 (also referred to as UM-1 and UM-2). Information quoted in the history section of this report makes reference to these older licence names.

The approximate centre of those licences is located at latitude 54o 41’ 24” north and longitude 7o 04’ 09” west. The two additional licence areas DG3 and DG4 (formerly TG- 03/03 and TG-04/03) lie to the north and northwest of DG1 and were acquired directly by Tournigan.

Dalradian Resources’ interest in the Tyrone property and relevant licenses comes from its acquisition from Tournigan of the entirety of the issued share capital of Dalradian Gold Limited, which is the licensee in respect of all of the aforementioned mineral prospecting licences in relation to the relevant property.

During the renaming and reregistering process the internal boundary between DG1 and DG2 was reoriented from east-west to a position which reflects the approximate location of the Omagh Thrust Fault (see geological descriptions in Section 7 and Figure 7.2). Older maps from previous operators may show the old internal boundary.

Licence maps, showing the boundaries of DG1, DG2, DG3 and DG4 have been issued by DETI and the CEC. DETI utilizes the Irish National Grid system of easting and northing which is then used for reference. Dalradian Gold and Tournigan used the Irish Transverse

Mercator system. The Tyrone property is located at approximately 25700 mE and 38600 mN.

Details on the eight licences, including size and expiry dates are presented in Table 4.1 below. The DETI licences and the CEC licences expire on the same dates and so only four records are shown in Table 4.1.

Table 4.1 Licence Details

Licence Area Date First Date of Licensee Area Minerals Reissued Number (km2) Granted Expiry Dalradian Gold Curraghinalt DG1/08 167.5 All 1 01/01/2002 01/01/2008 31/12/2013 Limited Dalradian Gold Mountfield DG2/08 184.5 All 1 01/01/2002 01/01/2008 31/12/2013 Limited Dalradian Gold Newtown DG3/09 248 All 1 23/04/2003 23/04/2009 23/04/2015 Limited Stewart East Dalradian Gold Sawel-Dart DG4/09 244 All 1 23/04/2003 23/04/2009 23/04/2015 Limited 1 - Concurrent licences with DETI & CEC.

The mineral resource estimate presented in this report is located entirely on the property covered by Licence DG1 (formerly UM-1/02 and referred to as such in quotes from previous workers). DG1 was originally issued to Ulster Minerals in 1996 as UM-11/96. A net smelter royalty of 2% is payable to Minco plc in respect of DG1.

Table 4.2 lists the annual expenditures made on each of the four licence areas since acquisition by Tournigan in 2002. Table 4.3 outlines the expenditure commitments for Dalradian Resources on the licences.

Prospecting licences in Northern Ireland are issued for a 2-year period and may be renewed (or extended), subject to relevant conditions being met and satisfied, on two occasions for a period of two further years, for a total of six years. At the end of each 2-year period a progress work report is submitted to the licensing authorities in order to support renewal, along with a letter indicating the intention to continue work on the license into the following 2-year period. At the end of each 6-year period a full reissuing application process must be undertaken whereby a full 6-year work report is submitted to the licensing bodies along with a new application for another 6-year period. Renewals, extensions and reissuing are not automatic.

The reissuing process for licences DG1 and DG2 (and the corresponding CEC licences) was carried out by Dalradian Gold in January, 2008. The licences have been currently issued for a term which may total up to six years (subject to the conditions described above) with reissuing scheduled again for January 1, 2014. The reissuing process for licences DG3 and DG4 (and the corresponding CEC licences) was carried out by Dalradian Gold in April, 2009. The licences have been currently issued for a term which may total up to six years (subject to the conditions described above) with reissuing scheduled again for April 24, 2015.

Table 4.2 Licence Expenditures

Licence From To Expenditure Reporting Stage Number (day/month/year) (day/month/year) (£) DG1/02 Reissued (6 years) 01/01/2002 02/01/2003 130,000 01/01/2003 02/01/2004 150,000 DG1/02 First extension 01/01/2004 02/01/2005 180,000 01/01/2005 02/01/2006 225,000 DG1/02 Second extension 01/01/2006 02/01/2007 262,500 01/01/2007 02/01/2008 262,500 DG1/08 Reissued (further 6 years) 01/01/2008 02/01/2009 350,000 01/01/2009 02/01/2010 350,000

DG2/02 Reissued (6 years) 01/01/2002 01/01/2003 30,000 01/01/2003 01/01/2004 60,000 DG2/02 First extension 01/01/2004 01/01/2005 75,000 01/01/2005 01/01/2006 100,000 DG2/02 Second extension 01/01/2006 01/01/2007 137,500 01/01/2007 01/01/2008 137,500 DG2/08 Reissued (further 6 years) 01/01/2008 01/01/2009 229,000 01/01/2009 01/01/2010 222,500

TG-3/03 (DG3/03) Reissued (6 years) 23/05/2003 23/05/2004 10,000 23/05/2004 23/05/2005 10,000 TG-3/03 (DG3/03) First extension 23/05/2005 23/05/2006 20,000 23/05/2006 23/05/2007 20,000 TG-3/03 (DG3/03) Second extension 23/05/2007 23/05/2008 30,000 23/05/2008 23/05/2009 40,000 DG3/09 Reissued (further 6 years) 23/05/2009 23/05/2010 40,000 23/05/2010 23/05/2011 40,000

TG-4/03 (DG4/03) Reissued (6 years) 23/05/2003 23/05/2004 10,000 23/05/2004 23/05/2005 10,000 TG-4/03 (DG4/03) First extension 23/05/2005 23/05/2006 20,000 23/05/2006 23/05/2007 20,000 TG-4/03 (DG4/03) Second extension 23/05/2007 23/05/2008 30,000 23/05/2008 23/05/2009 40,000 DG4/09 Reissued (further 6 years) 23/05/2009 23/05/2010 40,000 23/05/2010 23/05/2011 40,000

Table 4.3 Expenditure Commitments

Licence Expenditure Year Comments Number (£) DG1 2010 500,000 Dalradian’s submitted figure to DETI. Confirmation of acceptance awaited. 2011 500,000 Dalradian’s submitted figure to DETI. Confirmation of acceptance awaited. DG2 2010 100 - 200,000 Dalradian’s submitted figure to DETI. Confirmation of acceptance awaited. 2011 100 - 200,000 Dalradian’s submitted figure to DETI. Confirmation of acceptance awaited. DG3 2010 40,000 2011 40,000 DG4 2010 40,000 2011 40,000

Dalradian Gold provided 2-year renewal reports in support of the licences, usually around March of each year, following the renewal date of the licences. Six-year reissuing reports for the lands covered by DG1 and DG2 were prepared in June, 2008 and for TG-3 and TG-4 (DG3 and DG4) in April, 2009. Licences DG1 and DG2 were renewed in 2008. The next technical update reports were due February, 2010 and the licences are reported to have been renewed. Licences DG3 and DG4 were reissued in 2009. The next 2-year technical update reports will be due April, 2011.

Licensees are required to give notice of their intention to enter land to carry out work and must seek the agreement of landowners before entering their property. Compensation is payable to the landowner for any damage caused during exploration.

DETI is required to consult with other departments and with public bodies concerning its intention to issue a licence and is also required to place notices in the Belfast Gazette and at least one local newspaper. This is primarily to allow the owners of surface land within the area under application the opportunity to make their views known.

DETI notes that a draft licence and a ‘letter of offer’ are provided to applicants once all comments have been considered. The letter of offer may contain a number of conditions although DETI notes that, at the prospecting stage, it is usually sufficient for the applicant to inform all listed contacts of its plans and progress. When the conditions set out in the letter of offer are accepted and the terms of the draft licence agreed, the licence is executed by DETI and the company.

DETI states that planning permission is not required for early stage exploration although the Planning Service of the Department of the Environment “should be kept informed of the nature and scale of the company’s activities.”

4.3 LOCATION OF MINERALIZED ZONES

Previous exploration has identified the Curraghinalt vein system. An adit was developed by Ennex between 1987 and 1989 to access the deposit. The location of the Curraghinalt gold deposit relative to the boundaries of DG1 and DG2 can be seen in Figure 4.2. Details of the locations of the mineralized zones, the portal and adit are shown on Figure 4.3.

Figure 4.2 Curraghinalt Gold Deposit Location

Map provided by Aurum.

Figure 4.3 Locations of Principal Veins and Adit, DG1 (UM-1/02)

Map provided by Tournigan.

4.4 PERMITS

As noted above, licence holders are required to give up to four weeks notice of their intention to enter land to carry out work and must seek the agreement of landowners before entering their property. Compensation is payable to the landowner for any damage caused during exploration. While planning permission is not required for early stage exploration, the Planning Service of the Department of the Environment “should be kept informed of the nature and scale of the company’s activities.”

Tournigan reported that it had agreements with three landowners to provide ongoing access rights for a period of three years. The agreements covered the calendar years 2007, 2008 and 2009. Aurum reports that it has recently negotiated with the three landowners who, between them, cover the footprint of the Central Zone (see Section 7 and Figure 7.3), to extend these agreements. No problems are anticipated in reaching an agreement for payments per drill hole as well as repair of field damages. It is also reported that Dalradian Resources will have to deal with three new landowners to the west of the deposit later in 2010 for completion of the program proposed herein.

4.5 ENVIRONMENTAL CONSIDERATIONS

Micon has not undertaken a review of potential environmental concerns or liabilities at the Tyrone property.

At the time of Micon’s first site visit in August, 2007, drilling was the only activity being carried out. Shortly after that all work ceased and no activity was occurring during the second site visit in 2009.

Water flow and returns are channelled from the drill collar using 5-in drainpipes. The water and returns are directed into large sediment settling drums positioned close to a ditch or hedge. Water flows from the drums to a channel lined with straw to catch finer sediment. The water then enters the natural water-course. The drums and straw are regularly emptied/changed (with straw removed in bags). The use of flocculent is strictly limited to periods of difficult drilling.

Tully (2005) refers to, and quotes the following, from a report prepared by Peatfield (2003):

“One specific subject of interest is that the Owenkillew River has been designated by the Government of Northern Ireland as an Area of Special Scientific Interest. (“ASSI”). The Owenkillew River drains that part of the property containing the Curraghinalt gold deposit via the Curraghinalt and Attagh Burn streams and the Glenlark River. Lyons et al. (2001) reviewed the various reports regarding this designation and field studies related to it. The purpose of their work was to decide whether or not it would be reasonable to challenge the ASSI designation; their conclusion was that a challenge was not justified.

… The principal concerns appear to be:

The presence (JNCC 2003) of the Freshwater Pearl Mussel (Margaritifera margaritifera),

The presence (JNCC 2003) of the River Otter Lutra lutra, and

The presence (Preston et al. 2001) of the River Water-crowfoot [an aquatic flowering plant] Ranunculus penicillatus var. penicillatus.

These species are all of some special concern in the United Kingdom. On the Tyrone property, they are all restricted to the river and its immediate environs. It would appear that the most critical is the pearl mussel, which is found in three sites well upstream from the confluence of the Glenlark and incidentally of the Curraghinalt deposit.”

The above is provided for background information purposes only.

5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

Access to the Tyrone property is via a number of highways and local roads. These include the Killyclogher Road which runs northeast from Omagh and the Strabane Road (B48) which runs northwest from Omagh to Strabane. Local county roads, private roads and farm tracks provide generally good access within the property. Figure 5.1 shows the network of local roads and rivers around the Tyrone project area.

Figure 5.1 Tyrone Project Licence Map, Road Access and Drainages

- Curraghinalt Deposit

Note: Licences TG-3 and TG-4 are now called DG3 and DG4 by DETI but TG-3 and TG-4 by the CEC. See Section 4.

Local climate conditions are temperate. The average annual temperature is 9oC. The average temperatures vary between 4.1oC and 14.7oC throughout the year. Annual precipitation is 852 mm, the majority of which falls in the winter months between September and January (average >80 mm per month). Snowfall is usually restricted to areas of higher elevation and occurs on 10 days or less per year. Exploration activities can generally be conducted year- round.

The town of Omagh (population approximately 17,000) provides lodging and local labour, as do smaller local villages. Few experienced mining personnel are available locally although there is a small coal mining industry in Northern Ireland and the Irish Republic has a number of underground base metal mines. The principal economic activities in the area of the licences are sheep farming and, to a lesser extent, the raising of beef cattle.

Belfast is the capital city of Northern Ireland and supports a population of approximately 300,000. From Belfast, Omagh and the project can be reached by paved road, more than half of which is limited access highway. The over-road distance is approximately 110 km and requires less than 1.5 hours in good weather. Belfast is served by both a domestic and international airport with frequent daily flights to the rest of the UK and Europe.

The village of Gortin (pronounced Gorchin) is located a few kilometres from the Curraghinalt gold deposit at the western edge of licence DG1 (see Figure 5.1). Dalradian Gold, under Tournigan’s ownership, established an office there as well as a bunkhouse and core logging and storage facilities all of which are rented. Gortin is centrally located within the licence areas and well situated to support the exploration program. Dalradian Resources, through its acquisition of Dalradian Gold, has acquired the leases to these facilities.

The principal power sub-station is located at Plumbridge, approximately 9 km north of Omagh. Local water resources are abundant.

Topography is rolling hills and broad valleys (see Figure 5.2). Glacial deposits and peat cover much of the area resulting in mixed forest and heathlands, as well as the farmland. Relief ranges between around 100 masl in the major river valleys to some 550 masl.

Figure 5.2 General View of the Curraghinalt Deposit Area Looking South

6.0 HISTORY

6.1 ACQUISITION HISTORY

The Curraghinalt deposit property was acquired initially by Ulster Minerals (Ulster Minerals) in 1983, an entity which had been established as a wholly-owned subsidiary of Ennex. Ennex conducted exploration on the property between 1983 and 1999. Ennex sold its interest in Ulster Minerals to Nickelodeon in January, 2000. In August, 2000, the name of Nickelodeon was changed to Strongbow Resources Inc., and subsequently to Strongbow Exploration Inc. (Strongbow).

In February, 2003, Tournigan entered into an option agreement with Strongbow to earn an interest of up to 100% in the Curraghinalt deposit, located within a prospecting licence known as UM-11/96. Terms included staged exploration expenditures of $CDN4.0 million over a period of seven years and the delivery of a bankable feasibility study, and issuing shares to Strongbow at a price based on a 90-day trading average. At the same time, Tournigan entered into a similar option agreement with Strongbow in respect of their “Tyrone project”, located within prospecting licence UM-12/96. Tournigan established Dalradian Gold as a wholly-owned subsidiary through which it would earn its interests in the Curraghinalt (UM-11/96) and Tyrone (UM-12/96) properties.

In the following year (February, 2004), Tournigan entered into a letter agreement with Strongbow for the outright purchase by Tournigan of all of the issued and outstanding shares of Ulster Minerals through the issue of 5 million shares of Tournigan. The earlier option agreements were terminated and replaced by the letter of agreement. A net smelter royalty of 2% held by Ennex was transferred to Minco plc. Full transfer of ownership in Ulster Minerals to Tournigan was completed in December, 2004.

Tournigan then applied to the licensing authorities, and received licences TG-3 and TG-4 (both minerals and precious metals), to the northwest of UM-11/96 and UM-12/96.

Ulster Minerals licenses UM-11/96 and UM-12/96 were later renamed UM-1 and UM-2, (and ultimately DG1 and DG2 with internal licence boundary adjustments as described in Section 4 above). Details of the current licences are provided in Section 4, above.

In October, 2009, Dalradian Resources completed a purchase and sale agreement with Tournigan to acquire all of the issued and outstanding shares of Dalradian Gold which, according to the agreement, shall include the licences, mineral rights and surface rights (including easements) in the Area of Interest. The Area of Interest is defined in the agreement as Mineral Prospecting Licences DG1, DG2, TG-3 and TG-4, the latter two being renamed to DG3 and DG4 by DETI after acquisition (see Section 4). As of the time of Micon’s second visit in 2009, no exploration work had been completed by Dalradian Resources although Aurum had been retained to continue its management of the exploration program at the Tyrone project. During this time Aurum has completed a program of data compilation and targeting.

6.2 EXPLORATION HISTORY

The exploration history on the property is described by Tully (2005) who noted that very little is known of the history of gold exploration in the area prior to 1983. Gold was recognized in the gravels of the Moyola River in 1652 and in the 1930s, an English company reported plans for alluvial gold mining in a prospectus. Tully’s report concentrated on the Curraghinalt gold deposit and his description of the mineral exploration history concentrates on the DG1 licence area.

Tully (2005) noted:

“During the period 1971 to 1974 Rio Tinto Finance and Exploration (“Riofinex”) carried out an exploration program consisting of geological mapping and geophysical and geochemical surveys, searching for “porphyry copper” deposits in the Mid-Ordovician Tyrone Volcanic belt of rocks. This work was focused in an area located immediately to the south of the Curraghinalt deposit on Exploration License UM 2/02. The work was followed up with drilling of 6 diamond drill holes in the Cashel (Formil) area. The best intersections were 131 feet grading 0.17% Cu in drill hole H2, and 151 feet grading 0.12% Cu in hole H4. Riofinex ceased exploration work in the area in 1974.

Clifford et al. (1990) noted that during the mid 1970’s, the Geological Survey of Northern Ireland (GSNI) reported on basic geological and geochemical studies that it had conducted in the area which confirmed the presence of gold in stream gravels over a wide area. These reports also recorded anomalous values in stream sediments of elements that are commonly associated with gold.

On the basis of the above data, Ennex applied for a License in the area in 1980. This license was granted in 1981 and from that date to 1997 Ennex carried out an extensive exploration program consisting of geological mapping, prospecting, geochemical and geophysical surveys and diamond drilling in both the Tyrone Volcanic Group and the Dalradian Metasediments located immediately to the north.

During 1987 Ennex drilled 25 holes in the Cashel Rock gold deposit (located approximately 4-km southwest of Formil) which was discovered by deep overburden geochemistry, geophysics and trenching. Gold mineralization is located in silicified rhyolite and is generally conformable to the general northwest trending dip of the rhyolite flows. In general long intercepts of very low anomalous gold values were intersected (up to 145m grading 394 ppb Au), with some shorter better grade zones (5.45m @ 4.3 g/t Au, 6.9m @ 1.3 g/t Au and 3.63m @ 30.6 g/t Au).

In addition, Ennex drilled 11 reconnaissance holes in the Tyrone Volcanic rocks and in the Dalradian strata. Some of these holes returned anomalous base or precious metal assays, but no definite deposits were intersected.

In addition to the base metal exploration programs carried out by Ennex on the Tyrone Volcanic Group of rocks, they focused on developing and exploring the Curraghinalt deposit, which was discovered in 1983. During the period 1983-1997, Ennex completed 4 major drilling programs to explore the Curraghinalt deposit.”

Four phases of exploration between 1983 and 1997 are summarized as follows:

Phase 1 (1983-July, 1987): Detailed prospecting, geochemistry and geophysics. 68 trenches (2,856 m) and 63 diamond drill holes (6,387 m).

Phase 2 (August, 1987-March, 1989): Underground development program including development of an adit (412 m), lateral drifting (225 m) and raising (60 m). Lateral development utilized a Dosco SL 120 road header.

Phase 3 (May, 1995-March, 1996): Detailed and reconnaissance drilling to test previously inadequately drilled veins. Reconnaissance drilling of veins to the southwest of previously-drilled areas. Total 59 holes (4,980 m).

Phase 4 (June, 1996-May, 1997): Infill drilling on 25- to 30-m centres in the main vein areas. Drilling of 50 holes (5,400 m).

The locations of the drilling and trenching activities carried out by Ennex are shown in Figures 6.1 and 6.2.

Figure 6.1 Ennex Drilling at Curraghinalt

Map provided by Tournigan.

Figure 6.2 Ennex Trenching at Curraghinalt

Map provided by Tournigan.

Between 1997, when Ennex transferred its interest to Nickelodeon, and late-2002, when the agreement was signed between Strongbow and Tournigan, little work was done on the property. After completion of the 2007 drill program Tournigan ceased all exploration activity at the Curraghinalt deposit and, except for some prospecting on TG-3 and TG-4 in 2008, the property remained inactive until acquisition by Dalradian Resources.

Williams (2008) described the exploration history of what is now the DG2 licence area as follows:

“Mineral exploration has been completed over the TVG [Tyrone Volcanic Group] in the 1970s by Riofinex and Glencar and in the 1980s and 1990s by Ulster Minerals Limited. This has comprised of geological mapping, prospecting, geochemistry, ground magnetic and IP surveys, followed by trenching and drilling. An airborne INPUT was flown by Geoterrex in 1979 for Moydow Limited. This exploration has led to the discovery of numerous sub- economic yet significant gold and base metal occurrences.”

The principle target of interest for Ennex on DG2 was the Cashel Rock showing where a gold-mineralized silicified rhyolite breccia outcrop is exposed at surface. At this target 13 shallow drill holes targeted the zone just below surface. The results can be seen in Figures 6.3 to 6.6 which are taken from an internal PowerPoint presentation outlining targets in the TVG on licence DG2 (Williams and Archibald, 2009).

Figure 6.3 Cashel Rock Drill Section 380000N

From Williams and Archibald, 2009.

Figure 6.4 Cashel Rock Drill Section 380060N

From Williams and Archibald, 2009.

Figure 6.5 Cashel Rock Drill Section 380100N

From Williams and Archibald, 2009.

Figure 6.6 Cashel Rock Drill Section 380150N

From Williams and Archibald, 2009.

Little exploration is known to have occurred on the DG3 and DG4 concessions other than some prospecting and reconnaissance sampling and mapping by Tournigan.

The principle exploration program conducted by Tournigan, which was reviewed by Micon in 2007 and was the basis for the Curraghinalt gold deposit mineral resource estimate completed for Tournigan then and the updated estimate presented herein, is discussed in Sections 10 and 11 of this report.

6.3 HISTORICAL MINERAL RESOURCE ESTIMATE

In May, 1997, a polygonal resource estimate was prepared on behalf of Ennex by CSA. (See CSA 1997). The estimate was prepared on a minimum mining width of 1.25 m and a cut-off grade of 6 g/t Au. The estimate, referred to as a “polygonal resource calculation” is summarized below in Table 6.1. It is an historical estimate and is provided for information purposes only. It predates, and is not compliant with, NI 43-101 and should not be relied on.

Table 6.1 Summary of Polygonal Mineral Resource Estimate, 1997

Grade Vein Tonnes (g/t Au) Sheep Dip 21,257 15.68 T17HW 65,676 17.24 T17C 48,788 16.09 No. 1 116,483 17.39 T11F 38,144 13.21 106-16 97,962 21.61 ABB 79,787 13.03 Total 468,097 16.96

Tully prepared a mineral resource estimate in 2005 and, in 2007, Micon also completed a mineral resource estimate on the Curraghinalt deposit for Tournigan (Tully, 2005 and Mukhopadhyay, 2007). Those estimates were NI 43-101 compliant but are not considered to be historic estimates under the instrument. The 2007 estimate has been updated for this report and includes the final drill holes completed at the deposit.

6.4 HISTORICAL PRODUCTION

Micon is not aware of any historical mineral production from the Tyrone property.

7.0 GEOLOGICAL SETTING

7.1 REGIONAL GEOLOGY

The geological setting of the Curraghinalt deposit area is described by Tully (2005), as follows:

“The geological history of the project area and the immediate surrounding area is related to the closing of the Iapetus Ocean in Ordovician time. This major geological event involved the following events:

Obduction of oceanic crust from the southeast over older (pre-Caledonian) metamorphic rocks of the so-called “Central Inlier” (Hutton 1993; Earls et al. 1996);

Building of a volcanic arc with several volcanic cycles in middle Ordovician time;

Emplacement of tonalitic intrusive rocks within the arc; and

Finally overthrusting of older Dalradian (Proterozoic and possibly lower Paleozoic) clastic meta-sedimentary rocks from the north-east.

Rocks of the Central Inlier consist of various metamorphic rocks, probably derived from a mixed volcanic and sedimentary sequence, that were metamorphosed as early as 640 million years ago. These rocks were subsequently later altered by thermal metamorphism related to the intrusion of a major tonalite body about 460 million years ago during middle Ordovician time.

The Oceanic rocks which occur on both sides of the Central Inlier, and to the south of the Tyrone Volcanic Group, form what is known as the Tyrone Ophiolite within the Tyrone Igneous Complex, and are dominated by gabbros and basic dykes. The age of these rocks is believed to be about 472 million years (Hutton 1993).

The volcanic arc package of rocks, the so-called Tyrone Volcanic Group is considered to be middle Ordovician in age and forms part of the Tyrone Igneous Complex. The upper part of the volcanics is comprised of bimodal sequences of basaltic and andesite to rhyolitic submarine and subaerial lavas, volcanoclastics [sic] with chert horizons and intercalations of graptolitic shales. These lithologies are preceded by submarine basaltic andesite pillow lavas and associated intrusives.

A series of porphyry bodies and a series of calc-alkaline granitic intrusions intrude the volcano-sedimentary sequence. The history of these units began with the northwest-directed obduction of the ophiolite, with its related overlying arc, onto an offshore Proterozoic continental fragment (the Tyrone Central Inlier). During the later stages of this obduction, and before the arc had become inactive, these amalgamated units collided with and were overridden by the Dalradian rocks of the continental margin, causing the c.470 Ma Caledonian orogeny in this area. (Alsop and Hutton, 1993a).

The rocks thrust over the Tyrone Volcanic Group by the Omagh Thrust form part of the Dalradian Supergroup. The Dalradian rocks consist of a metamorphosed clastic sedimentary

package of biotite to garnet grade semi-pelites, (siltstone) psammites (impure sandstone) and chloritic-sericitic pelites (shale). The younger Dalradian Supergroup clastic sediments of the Grampian terrane accumulated in passive-margin rift basins between c.800 Ma and the Early Cambrian during the breakup of the Late Precambrian supercontinent Rodinia, and the formation of the Iapetus Ocean. The Glengawna Formation contains a distinctive graphitic pelite horizon that hosts the Glenlark gold and base metal occurrence. The Curraghinalt deposit occurs in the Mullaghcarn Formation that is comprised of fine grained clastic meta- sedimentary rocks (psammite, semi-pelite and chlorite-rich pelite).

There are many similarities between the Tyrone Volcanic Group rocks and the rocks of the Appalachian Mountains, Atlantic Canada, Ireland, Scotland and Scandinavia. The rocks in these areas were part of the continuous Appalachian-Caledonian Orogen, prior to the opening of the Atlantic Ocean basin in middle Mesozoic time. It is postulated that the Bathurst, New Brunswick area rocks (Tetagouch Group) are correlative with rocks in southern Ireland (Avoca, in County Wicklow), whereas the Tyrone area Ordovician rocks are more closely related to those at Buchans, Newfoundland. Similarly, it is postulated that late Proterozoic and early to late Cambrian sediments present on the Great Northern and Baie Verte peninsulas of Newfoundland are analogous to that of the Dalradian in Northern Ireland.”

Figure 7.1 shows the regional geology of Northern Ireland.

Figure 7.1 Regional Geology of Northern Ireland

25 km

Map provided by Tournigan. Property boundaries are shown outlined in red. Note: the internal boundary between DG1 and DG2 is the former east-west boundary between UM-1 and UM-2.

7.2 PROPERTY GEOLOGY

Figure 7.2 shows the geology of the area covered by the DG1 and DG2 licences (formerly UM-1/02 and UM-2/02) and the location of the Curraghinalt deposit in UM-1/02.

Figure 7.2 Local Geology in the Area of Curraghinalt

Map provided by Tournigan. Note: the internal boundary between DG1 and DG2 is the former east-west boundary between UM-1 and UM-2.

7.2.1 Curraghinalt Gold Deposit Area - Licence DG1

Tully (2005), whose report concentrated on the Curraghinalt gold deposit, describes the geology of the deposit area as follows:

7.2.1.1 Stratigraphy

“The Curraghinalt deposit is located 3-km to the north of the northeast-southwest striking Omagh Thrust Fault. This major fault has thrust Dalradian Supergroup rocks from the northwest over Tyrone Volcanic Group rocks located to the south. The Dalradian metasediments on the northern side of the thrust strike NE-SW and dip to the northwest. The lithologies are interpreted to lie on the lower limb of a gently to moderately northwest- dipping southeast upward-facing, major recumbent overturned tight isoclinal fold. This fold is referred to as either the Sperrins Overfold or the Sperrins Nappe.

The Dalradian stratigraphy in the license area is inverted, occupying the lower limb of the overturned Sperrin Nappe. The Dalradian Formations present in the area from the southeast

(at the Omagh Thrust) to the northwest are, from the youngest to the oldest, the Mullaghcarn, Glengawna and Glenelly Formations. The Mullaghcarn Formation, which hosts the Curraghinalt deposit, consists of mixed semi-pelites, quartz semi-pelites and psammites. The Glengawna Formation comprises a mixed package of graphitic pelites, graphitic semi-pelites, chloritic semi-pelites and minor psammites. Furthest north is the Glenelly Formation, which is comprised of pelites, semi-pelites and quartz semi-pelites.”

7.2.1.2 Structure

“The structures in the immediate area of the Curraghinalt area have been described in detail by M. Boland (1997) and are summarized as follows:

The Curraghinalt deposit consists of a WNW trending vein swarm. The veins are controlled by a series of high-angled, east-west trending shears that are interpreted to represent hangingwall accommodation structures caused by a ramp in the footwall of the Omagh Thrust. (Earls and al. 1996 [sic]). These structures are expressed geophysically as strong fraser filtered VLF-EM linears. The shears are vertical to northerly steep dipping structures, which dextrally offset the veins.

The veins are also offset sinisterly [sic] by ENE to NNE trending normal faults that dip to the NW and with general displacements of approximately 10 metres. Low angle, north-dipping thrust faults are also evident in the main access adit.”

Aurum, on behalf of Tournigan, retained Dave Coller, P.Geo., Euro.Geol., a structural economic geological consultant, to prepare an initial review of the Curraghinalt vein system. See Coller (2007). Coller concluded:

“An overall model is suggested for a shallow east plunging system with steep west pitching ore shoots. The implication is that the SE Extension represents a higher structural level in the system than the Central Resource area such that similar grade and thickness veins are predicted at moderate depths below the SE Extension.”

See Figure 7.3 for the relative locations of the Central Resource Area and Southeast Extension, and the relative locations of the principal identified mineralized veins on level 170.

Figure 7.3 Plan of Curraghinalt Vein System on Level 170

NORTH

SOUTH

Grid axes shown in metres. Coller (2007).

Coller undertook a detailed interpretation of the vein geometry for two levels in the Central Resource Area, level 170 and level 220, which are 170 m and 220 masl, respectively. Coller also provided an interpretation for the entire system on level 170.

Coller tabulated the types of veins and their characteristics by means of the definitions in Table 7.1.

Table 7.1 Definitions for Geometry of the Vein System

Type Characteristic Representation Comments Vein complex Series of veins which probably all Envelope encompassing Previously defined as single veins. link in 3D, with one main vein or all the vein branches. Several vein zones and linked several en echelon high grade branches are potentially economic. veins and many branches. Vein zone Large single or closely spaced Width of zone containing In detail internal vein segments and branching veins regarded as a veins defined as one vein associated veinlets have separate single vein. with average grade as on Au assays but would be mined as a drill sections. single vein. Vein branch Veins branch connections Separate veins in drill Larger branches often high grade between veins zones within a vein sections. and may be mined by linkage to complex [sic]. main vein zone. Other veins Major veins which may link or Separate significant vein Could be defined as separate vein occur between vein complexes. zones not named. complexes with more drilling.

7.2.1.3 Central Resource Area

For the Central Resource Area Coller noted:

“Most of the large high grade veins in the Central Resource Area are relatively distinct vein zones, with a few simple high grade branches and sometimes en echelon segments. The No 1 Vein Complex is more complex and develops multiple branches in the eastern part of the Central Resource Area.

1. Grade is very variable within each of the vein complexes but is consistently over 5 gpt for almost all the complexes and branches (on both compiled levels …). The exception is the western part of T17 at the lower 220 level.

2. Over the 300-350m strike length of the Central Resource Area, all of the vein complexes have three or more very high grade segments >25gpt [grams per tonne]. In the case of No 1 and 106-16 these segments are steep plunging (comparing levels) with a westerly pitch …. T17 has the thickest and most continuous high grade segment within which there are two very high grade segments of >50gpt.

3. Most of the branches within the vein complexes are high grade and of significant thickness to be included in a resource. No 1 complex has two main branches at the lower level which may separate at the higher level.

4. The main veins (and complexes) have varying dips to the north. The T17 has steep dipping segments of around 70 N although the eastern part of the vein dips more moderately at 55 N. The No 1 complex is generally moderately dipping between 40 and 50 N, whilst the average dip of most of the other veins is around 55-60 N.”

7.2.1.4 Southeast Extension

“A 500m strike length of drilling has defined a high density of high-grade veins which are clearly continuations of the main Vein Complexes defined in the Central Resource Area … and which represent a significant Au resource. The main interpretation of the vein geometry showing the high grade distribution and probable linkage of the veins is taken from the 170 level. The other levels have less information but could be worked up for some parts of the SE [Extension].

1 The Vein No 1 and Vein 106-16 complexes develop as multi-branch systems with en echelon, but linked, thick high grade vein segments. ... These two vein complexes essentially merge on 170 level.

2. The high grade segments (>11gpt) of all the vein complexes appears to continue as far east as the current drilling and hence is presumed to continue further.

3. The principal vein T17 appears to be a very straight vein with three or four high grade segments, thickening to the east.

4. The Crows Foot Vein complex in the southern part of the system appears now from the compilation to be an E-W vein system with multi-branches, several of high grade. This

vein complex is parallel to the Kiln Shear. This may be a very significant vein complex which is untested.”

7.2.1.5 Attagh Burn Vein Complex

“The Attagh Burn drilling west of the Central Resource Area is now interpreted as a wide complex of veins with the same WNW strike as those in the Central Resource Area. Within the complex there are 3-5 high grade parallel veins or branches. This complex of veins may be bounded to the south by a continuation of the Kiln Shear. However, displacements on the Kiln Shear do not appear to be very significant even in the Central Resource Area so the Attagh Burn veins may be present south of the shear.”

7.2.1.6 Northern Area Veins

“Three significant high grade veins have been discovered in the Northern Area, immediately north of the Central Resource Area. These veins are not well drill tested although the Mullen Vein appears to have a strike-length of at least 700 m and has three high grade segments and several branches similar to the main vein complexes. The Sheep Dip Vein has a significant high grade segment and at least one main branch and dips [at] around 75-85N than the other veins.

The Road Vein is essentially untested with one relatively deep level intersection in 04CT 26 of 1.2m @ 29 gpt.”

Coller concluded:

“The consistent geometry and pattern to all three of these features links both the vein branching, the thickness variations and the high grade shoots in a kinematic way that relates to the genesis of the system. The common westerly pitching vector to the system is almost certainly related to the syn-kinematic ‘fault’ control. At this stage the interpretation is consistent with a movement direction which is normal to the vein i.e. north block up dip to the west (compressional) as suggested by the geometry of the rolls in plan and consistent with the larger scale en echelon vein style and relay branching (above) which is left lateral”.

The vein system and controlling structures of the Curraghinalt gold deposit are interpreted to strike to west-northwest towards, and possibly onto, the TG-3 licence and southwest corner of the TG-4 licence as seen in Figure 7.2.

7.2.2 Tyrone Volcanic Group - Licence DG2

Williams and Archibald (personal communication via e-mail, December, 2009) provides the following description of the Tyrone Volcanic Group rocks on licence DG2.

“The Tyrone Volcanic Group (TVG) is located to the SE of the Dalradian metasediments and is Ordovician in age. It is structurally demarcated on the southeast by the much older Pre- Cambrian Complex of the Central Metamorphic Inlier and further to the northeast by an ophiolite suite. On the northwest side the Ordovician has been overthrust by the Dalradian, late Pre-Cambrian to early Palaeozoic, metasedimentary rocks on the Omagh Thrust. The

thrust dips northwest at a moderate dip. Both ends of the northeasterly striking Ordovician belt are covered by younger, Devonian, Old Red Sandstone and the Lower Carboniferous.

Work by Earls (1987) suggests the presence of three island arc volcanic cycles favourable for VMS [volcanogenic massive sulphide] deposits, adjacent to the back arc basal ophiolites, within the TVG. These cycles are designated from top to bottom as follows:

Cycle 3. Broughderg Formation

Cycle 2. Bonnety Bush - Glencurry Formation

Cycle 1. Dungate - Tanderagee Formation

The top of each formation is marked by an erratic increase in volumetrically minor chert or ironstone, which is taken to represent the culmination of a cycle. The cherts are variably magnetic and discontinuous and occur at several horizons. For this reason, and their relatively shallow dip to the northwest, the cherts are difficult to trace on the magnetic surveys. The cherts assigned to the two lowermost cycles are jasperoid, indicative of an oxidizing environment, whereas the Cycle 3 cherts are grey to black suggesting reducing depositional conditions. Each sequence progresses from mafic to more felsic upwards.

Basaltic flows are common in the lowermost parts of the Cycle 1, Dungate-Tanderagee Formation. East of the Dungate Fault the top of the cycle, fairly well marked by cherty zones within the volcanics lies close to extensive ophiolite suite rocks to the southeast. West of the Dungate Fault the Cycle 1 volcanic sequence is much thicker, with some suggestion of ophiolite suite rocks along its contact with the older Metamorphic Inlier.

The Cycle 2, Bonnety Bush-Glencurry Formation hosts major quartz porphyry intrusions towards the central part of the TVG. These porphyry intrusions are, in all likelihood, the feeders for the rhyolites occurring stratigraphically above at the top of Cycle 2. The intervening tonalites dilate the section and for present purposes may be imagined as being removed to bring the quartz porphyry intrusions closer to their original stratigraphic proximity to the rhyolites.

The Cycle 3, Broughderg Formation has lesser rhyolite development than the underlying formation, but the ratio of mafic to felsic flows and tuffs is less than in the preceding formations. Black argillite occurs in the upper part of the formation and associated weakly auriferous cherts. The top of the formation is overridden by the Omagh Thrust.”

Williams (2008) also notes the similarities between the Tyrone Volcanic Group and lithologies in Scandinavia and eastern Canada and their potential to host VMS style mineralization:

“The Tyrone Volcanic Group can be roughly correlated with similar volcanic packages in Québec, New Brunswick, Newfoundland and the Scandinavian Caledonides. Similar aged rocks in all four widely separated areas contain significant VMS deposits. Of these, the most significant are the numerous large deposits of the Bathurst District in New Brunswick (Luff 1995), and probably the famous Buchans deposits of Newfoundland (Swinden 1991; Thurlow and Swanson 1981). The latter have in the past been considered to be slightly younger,

(Kean et al. 1981; Thurlow 1981; Bell and Blenkinsop 1981), but subsequent information (Nowlan and Thurlow 1984; Swinden 1990; Williams 1995, page 151) has shown them to be most likely time-correlative with the Bathurst area deposits. Other deposits of roughly similar age include several in the Eastern Townships of Québec (Trottier and Gauthier 1991; Gauthier 1995) and a number in the Trondheim district of Norway (Stephens et al. 1984). There are many similarities between the Tyrone Volcanic Group rocks and those in these other regions. Such correlation is not unreasonable, because the rocks of the Appalachian Mountains, Atlantic Canada, Ireland, Scotland and Scandinavia were part of the continuous Appalachian-Caledonian Orogen prior to the opening of the Atlantic Ocean basin in middle Mesozoic time (see, e.g., Stephens et al. 1984; Williams 1984; Williams et al. 1992).” [See Figure 7.4.]

More recent work (van der Pluijm et al. 1995) has suggested that the volcanic belts are parts of several island arcs related to separate subduction zones in the Iapetus Ocean. It may well be that the Bathurst area rocks (Tetagouche Group) are correlative with rocks in southern Ireland (e.g. those at Avoca, in Co. Wicklow, Republic of Ireland) whereas the Tyrone area Ordovician rocks are more closely related to those at Buchans, Newfoundland.”

Figure 7.4 Appalachian Correlations

New Brunswick Ireland Nova Scotia

Newfoundland

Red dots are occurrences of significant VMS deposits in the Appalachian-Caledonide mountain belt. After Archibald (2009).

7.2.3 DG3 and DG4 Licences

7.2.3.1 Stratigraphy

Williams and Archibald (2009) described the geology of the DG3 and DG4 licence areas as follows:

“The rocks underlying the licence area belong to the Central Highland (Grampian) Terrane, and consist of mid- to late-Neo-proterozoic rocks of the Dalradian Supergroup and a small area of unconformable Lower Carboniferous sandstone. The Dalradian Supergroup is composed of a thick sequence of clastic marine sediments, with minor volcanic units, deposited in a rift basin, and can be correlated with successions in Scotland (Highlands), Republic of Ireland (Cos. Donegal, Mayo and Galway) and perhaps the Fleur de Lys Supergroup in Newfoundland (Kennedy, 1975) and the Eleonore Bay Supergroup in eastern Greenland (Soper, 1994).

The Dalradian Supergroup is divided into four groups, i.e., Grampian, Appin, Argyll and Southern Highland [Table 7.2], of which only the Argyll and Southern Highland groups are present in Northern Ireland (Strachan et al. 2002). The rocks in the Argyll Group indicate a change in tectonic and depositional environment, varying from a relatively stable shelf environment (Easdale and Crinan subgroups) to a floundered shelf environment associated basaltic magmatism (Tayvallich Subgroup) caused by the crustal thinning and stretching prior to the opening of the Iapetus Ocean. Erosion and reworking of the basic igneous rocks formed contemporaneous volcaniclastic sediments (green beds) present in the upper part of the Argyll Group and the lower part of the South Highland Group. The South Highland Group formed in an unstable shelf environment and, as such, has developed turbidite facies. These vary from coarse-grained proximal arenites (conglomerates) to fine-grained outer fan pelites (shales).

All of the Dalradian Supergroup lithologies were deformed during the Grampian Orogeny, and now lie on the inverted southern limb of the Sperrin Nappe. The dominant structural feature in the licence area an isoclinal F2 anticline, plunging to the northeast, which has been refolded to form a northwest plunging anticline.

Based on information from adjacent areas it is certain that the Dalradian Supergroup rocks were covered in younger lithologies. However, the only evidence for the presence of these units in the licence area are a sandstone-dominated Lower Carboniferous basin that is present 3 km to the north of Newtownstewart and 3 km to the east of Gortin, and another basin at the extreme south of the licence.

Table 7.2 Correlation of Dalradian rocks in Scotland and Northern Ireland

Scotland West Co. Tyrone/ Sperrin Mountains Northeast Co. South Co. Derry North South Antrim Group Subgroup Formations Londonderry Mullaghcarn Glendun Croaghgarrow Glengawna Southern Ballykelly Runabay Highland Glenelly Shanaghy Mullyfa Claudy Dart Altmore Torr Head Tayvallich Aghyaran Dungiven Limestone Owencam Argyll Crinan Killeter Quartzite Newtownstewart Murlough Lough Esk Psammite, Easdale Lough Mourne Grit Geological Survey of Northern Ireland, 1997.

Argyll Group: Crinan Subgroup

The oldest rocks present in TG-3 [DG3] licence are psammites and pelites belonging to the Newtownstewart Formation. The Newtownstewart Formation is the equivalent of the Killeter Quartzite Formation present in TG-1 [expired licence]. Both formations belong to the Easdale Subgroup.

Newtownstewart Formation

The Newtownstewart Formation is present in the south-western and north-eastern part of the licence area (immediately south of Newtownstewart, and 3 km east of Strabane) and is exposed in the core of a recumbent F2 fold. The formation is composed of fine-grained, pale grey quartzose psammites in beds approximately 50 cm thick, and is interbedded with thin pelite units. Occasionally the formation shows graded pebbly beds. Since the base of the unit is not observed the exact thickness is unknown, but it is probably similar to the Killeter Quartzite Formation, i.e., ~1000 m.

Argyll Group: Tayvallich Subgroup

The Tayvallich Subgroup overlies the Crinan Subgroup and is characterised by two contrasting rock types; limestones and pillowed basalts. Local names for the Tayvallich Subgroup in Northern Ireland include Aghyaran Formation (South and Central Donegal), Dungiven Formation (Counties Londonderry and Tyrone) and the Torr Head Limestone Formation (Co. Antrim). In the TG-3 [DG3] licence the Dungiven Limestone Formation is used to describe the Tayvallich Subgroup.

Dungiven Limestone Formation

The Dungiven Limestone Formation is present throughout most of the licence, and it attains a maximum extent at Strabane where it is present in the nose of a northwest plunging anticline. Meta-limestone is the dominant lithology, and is associated with pelite, semi-pelite, psammite, quartzite, basaltic pillow lava and volcaniclastic sediments. The best exposure of this unit is 5 km north of Plumbridge on the eastern flanks of Butterlope Glen (GR 249300; 394700). Basaltic pillow lavas occur at several localities, with individual pillows up to 1 m in diameter, and consisting of fine-grained, equigranular metabasalts. Volcanic textures such as triple junction chilled margins, gas vesicles and radial fracture patterns are all present. Meta-limestones are the dominant lithology at the contact with the Newtownstewart Formation and the overlying Claudy/Dart Formation. The limestone varies in texture from pale saccharoidal to dark crystalline and thickness from a few centimetres to several metres. The sequence has been extensively intruded by metabasite sills, and these are probably conduits to more extensive pillow lavas elsewhere in the Tayvallich Subgroup.

Southern Highland Group

Three formations belong to the Southern Highland Group in the north Sperrin Mountains; Claudy, Ballykelly, and Londonderry formations. In the south Sperrin Mountains the South Highland Group is composed of four formations; Dart, Glenelly, Glengawna and Mullaghcarn. The Glenelly and Glengawna formations are equivalent to the Ballykelly Formation in the north Sperrin Mountains. Dominant lithologies within these formations are

psammites, semi-pelites, pelites and amphibole schists. All of the south Sperrin Mountain formations are present in the TG-3 [DG3] licence, whereas the Claudy Formation is the only north Sperrin Mountain Formation present.

Claudy Formation

The Claudy Formation is present in the northern part of the licence area; to the north of Strabane [Figure 5.1]. The formation has a variable thickness, ranging from 750 to 2000 m, and is predominantly composed of coarse-grained quartzo-feldspathic psammite with graded bedding. The quartzo-feldspathic psammite contains coarse grains of blue and white quartz and pink and white feldspar. Beds within the psammite units can attain thickness up to 1 m, alternating with silvery grey phyllitic semipelite and rare greyish-black phyllitic pelite. The presence of biotite porphyroblasts, rare garnets, and chlorite indicate upper greenschist facies metamorphism. Two limestone units within the Claudy Formation are important marker units. These units are termed the Alla Glen Limestone Member and the Bonds Glen Limestone Member. The Alla Glen Limestone Member is pale grey to greyish blue, coarsely crystalline and forms units up to 1 m in thickness. Individual units are separated by black graphitic semipelite and pelite. The Bonds Glen Limestone Member is pale to dark bluish grey, medium- to coarse-grained, in beds up to 0.75 m in thickness. The beds are separated by dark grey to black pelite that is often pyrite-bearing.

Dart Formation

The Dart Formation is present in the south-eastern quadrant of the licence area. The base of the formation is composed Glenga Amphibolite Member, which is interpreted as a re- sedimented volcaniclastic siltstone and sandstone. Other lithologies within the formation include quartz pebble conglomerate, psammite displaying graded bedding, semipelite and the Henry’s Bridge Member. The Henry’s Bridge Member is between 30 to 50 m in thickness and is composed of a dark greenish brown, chlorite-rich volcaniclastic semipelite and is interpreted to record erosion of underlying volcanics, but may also result from contemporaneous volcanism in the hinterland (Strachan et al., 2002). Throughout the Dalradian volcaniclastic semipelites are known as “Green Beds”.

Glenelly Formation

The Glenelly Formation outcrops between 4 km northeast and southwest of Gortin and comprises of four mappable members, i.e., Oughtboy Burn, Clogherny, Golan Burn and the Garvagh Bridge. The Oughtboy Burn Member is composed of approximately 70 m of dark green, chlorite- and biotite-rich volcaniclastics semipelite (green bed) with abundant feldspar (albite) porphyroblasts. The overlying Clogherny Member is a calcareous, pale-green to white tourmaline-rich schistose semipelite. Medium- to coarse-grained psammite also comprises this member. A similar lithology is encountered in the overlying Golan Burn Member, except tourmaline is less abundant, and it contains thin beds of impure meta- limestone. The Garvagh Bridge Member is composed of fine- to medium-grained, pale grey, calcareous semipelite schist, and thin bedded meta-limestones. The calcareous units represent basin shallowing during periods of deeper water sedimentation (Cooper and Johnstone, 2004).

Glengawna Formation

The Glengawna Formation is restricted to the southeast of the TG-3 [DG3] licence area, forming the low ground in the Gortin Glen Forest Park (GR 249000 381000). The formation is approximately 400 m thick and comprises a distinctive association of graphitic pelites, semi-pelites, chloritic semi-pelites and psammites. These lithologies contrast markedly with the silvery-grey lithologies of the underlying Glenelly Formation.

Mullaghcarn Formation

The formation is only present in the extreme southeast and south of the licence area, and it consists of psammite, semi-pelite, chloritic-semipelite and pelite schists. Garnets are sometimes present, and are usually replaced by chlorite or hematite. Bedding is difficult to recognise, but it is generally acknowledged that the formation is overturned. The Mullaghcarn is economically significant, since both the Curraghinalt and Cavanacaw gold deposits are hosted in this formation.

Carboniferous: Late Courceyan and Early Chadian

Two Carboniferous basins are present within the licence area. In the south, the Omagh Sandstone Group represents strata deposited prior to, and during, and marine transgression, whereas in the north the Owenkillew Sandstone Group in the Newtownstewart Outlier represents non-marine strata.

Omagh Sandstone Group

The Omagh Sandstone Group rests unconformably on the Dalradian. The basal unit is up to 100 m thick and is composed of non-fossiliferous red sandstone with calcrete nodules, and quartz pebble conglomerates (Mitchell, 2004). Much of the remaining sequence is dominated by channel sandstone and siltstone that contain Courceyan to early Chadian miopores. However, thin algal limestones with evaporite replacement textures occur locally. Some of the limestones contain rare brachiopods. The exact thickness of this group is difficult to estimate based on the amount of uplift, folding, and erosion that has taken place.

Owenkillew Sandstone Group

The Owenkillew Sandstone Group rests unconformably on the Dalradian and comprises of approximately 1500 m of predominantly non-marine strata present within a half graben. Lithologies include greenish grey and purplish red sandstone and siltstone, with thin beds of algal laminated limestone (Mitchell, 2004). Mudstones containing miospores have indicated an early Chadian age. The group is thought to have formed in an inter-cratonic basin with current indicators suggesting the sediment source to the north.”

7.2.3.2 Structural History and Setting of Gold Mineralization

Williams (2009) described the structural history and setting of gold mineralization on the DG3 and DG4 licence areas as follows:

“Known gold deposits within the Dalradian Supergroup, e.g., Curraghinalt and Cavanacaw, lie on the inverted, gently to moderately northwest-dipping, limb of a southeast facing, major overturned tight to isoclinal fold (Alsop and Hutton; 1993a, 1993b). This fold is known as the Sperrin Fold in the Sperrin Mountains, the Altmore Anticline in northeast Co. Antrim (Alsop and Hutton, 1993a; Cooper and Johnston, 2004). All of these structures are analogous to the Tay Nappe in Scotland, that formed as a result of D2 flattening, tightening and extension of an earlier D1 anticline (Stephenson and Gould, 1995; Strachan et al., 2002). Deformation resulted in lower greenschist facies in the north (Co. Donegal) to lower amphibolite facies metamorphism close to the Omagh Thrust. D3 deformation in the south Sperrin Mountains resulted in a south-easterly-verging minor folds and low angle, northwards inclined thrust surfaces, i.e., the Omagh Thrust Fault, which transported Dalradian rocks over the early Ordovician Tyrone Igneous Complex (Alsop and Hutton, 1993a). The dominant D3 structural feature in west County Tyrone is the Ballybofey Nappe, which is a sub-recumbent structure that closes and faces towards the southeast and is displaced by several Caledonian faults (Alsop, 1991).

Auriferous quartz-carbonate veins occur throughout the Dalradian Supergroup, with the majority (e.g., Curraghinalt, Golan Burn, Cavanacaw) present close to the Omagh Thrust, where the Dalradian rocks have been overthrust to the southeast over the Tyrone Igneous Complex. The presence of this terrane boundary obviously plays a significant role in the formation of economic mineralization. Gold tends to occur as electrum, gold-bearing hessite (Ag2Te) and as substitutions in pyrite. Associated sulphides in the veins include pyrite, chalcopyrite, arsenopyrite, tennantite, galena and sphalerite. Gangue minerals are quartz, calcite, dolomite, siderite, orthoclase and rare barite. All veins are steeply dipping, but their strike varies from north-south at Cavanacaw in the west, to west-northwest in the east at Curraghinalt.”

A simplified geological map showing the relationship of the major units of the Dalradian Metasediments, Tyrone Volcanic Group, Central Inlier and the Tyrone Plutonic group can be seen in Figure 7.5.

Figure 7.5 Simplified Geological Map of the Project Area

Omagh Thrust Fault 45 Curraghinalt Deposit

8.0 DEPOSIT TYPES

Tully (2005) described the types of mineral deposits that have been identified on UM-1/02 and UM-2/02 (DG1 and DG2):

“Orogenic structurally controlled, mesothermal gold-bearing quartz and quartz-sulphide veins in Dalradian clastic meta-sedimentary rocks - e.g. the Curraghinalt deposit.

Possible stratabound and perhaps strataform semi-massive and massive bands of base metal (lead, zinc and pyrite) sulphides with significant gold values in fine grained Dalradian clastic meta-sedimentary strata - e.g. the Glenlark occurrence.

“Porphyry”-style bodies in altered intermediate intrusive rocks within the Tyrone Volcanic Group. Sulphide veinlet stockworks contain pyrite and chalcopyrite, and some quartz veins host rare galena and sphalerite. Molybdenite occurs on shear surfaces - e.g. the Formil occurrence.

Siliceous breccias with gold values and base metal sulphides in felsic units of the Tyrone Volcanic Group - e.g. the Cashel Rock occurrence.”

8.1 THE CURRAGHINALT DEPOSIT

The Curraghinalt deposit, an orogenic structurally-controlled, mesothermal gold deposit is comprised of a swarm of gold-bearing quartz veins within a meta-sedimentary sequence of pelites, semi-pelites and psammites. The veins range from a few centimetres wide to over 3 m wide and are aligned along a west-northwest trend. Average width is approximately 1.2 m. Strike length ranges between 100 m and 500 m. The veins dip between 60o and 75o to the north and depth has been traced to approximately 160 m down-dip.

As noted above, the structure is related to high-angle, east-west- to west-northwest-trending shears related to the Omagh Thrust.

A technical report prepared for the DETI and Crown Mineral Agent by Aurum (Williams, 2008) describes the veins as follows:

“The veins are dominantly quartz, with some carbonates. Locally abundant sulphides are mostly pyrite and commonly contain variable amounts of other accessory minerals, notably chalcopyrite, tetrahedrite and tennantite, and trace amounts of galena, sphalerite, molybdenite and several telluride minerals present. Gold is reported to occur as electrum, in unspecified telluride minerals and within the pyrite.”

8.2 THE TYRONE VOLCANIC GROUP

The TVG is known to host both gold and porphyry copper style mineralization and is suspected to have good potential to host VMS style mineralization similar to the Buchans type.

Williams and Archibald (personal communication via e-mail, December, 2009) observes the following:

“The main potential for VMS mineralization is in Cycle 3 [of the TVG] and extends along a 2- 3 km wide corridor on the southern side of the Omagh Thrust. Southwest from Crocknahala (267000E, 387000N) the volcanics are intruded [by] tonalites and quartz porphyries with associated rhyolites. It is likely that the rhyolites trending southwest from the Slievemenagh area (Formil) (262500E, 382700N) continue under glacial cover along the northerly side of the tonalite towards Mountfield and then continue on either side of the tonalite for some distance to the southwest. The rhyolite may be assumed to continue southwest from the Cashel- Leaghan gold prospect along the northern flank of the tonalite.

With regard to the licensed area, the most prospective VMS locations would be along strike from these central areas, both north and south of the tonalite. The northerly striking Dungate fault makes the volcanic rocks on its northeast side towards Tullybrick a favourable locus for VMS deposits.”

As described above there is also potential for porphyry style copper mineralization and gold- mineralized silicified breccias. The potential target types in the TVG, on licence DG2, are summarized in Figure 8.1.

Figure 8.1 Mineralization Models and Target Types on DG1

After Williams and Archibald (2009).

9.0 MINERALIZATION

9.1 THE CURRAGHINALT DEPOSIT

The mineralization at the Curraghinalt gold deposit is described by Tully (2005) as follows:

“Mineralogically the veins are composed of quartz with carbonate on late cross veins. Pyrite and chalcopyrite are the dominant sulphides with accessory tennantite and tetrahedrite plus rare arsenopyrite, galena and molybdenite. Three styles of sulphide mineralization are evident at Curraghinalt; (i) euhedral pyrite crystals with chalcopyrite occur in white quartz, filling vugs or along micro-fractures, (ii) grey pyritic quartz forms the matrix to brecciated white quartz, and (iii) massive pyrite.

The variations in the sulphide content are dependent on the volume of space created by movements on the E-W shears. The massive sulphide mineralization present at the eastern end of the T17HW drift [Ennex underground exploration program] is due to its position adjacent to the Kiln Shear. On the No. 1 Vein, drill holes 106-16, 90-12, 90-14 and 90-43 exhibit increased mineralization close to the Kiln Shear. Zones of grey pyritic quartz breccia commonly occur along the hangingwall contact of the veins. This is evident in the No. 1 drift. The veins have sharp margins with no mineralization in the country rock. Sericitization and minor chloritization occurs in the hangingwall and footwall of some of the veins, but it is not consistently present.”

The gold at Curraghinalt occurs in several forms:

• As electrum, with gold varying from 38 to 98 atomic percent. • As gold-bearing tellurides, with up to 5.9 atomic percent gold. • As trace substitutions within pyrite.

Four stages of quartz deposition (Q1 through Q4) were recognized, with gold mineralization associated with the second and fourth stages, as described by Tully (2005):

“Q1 represents the initial phase of vein formation and has an opaque, milky white appearance. No sulphides are present, and it is interpreted that the quartz precipitated from a metamorphic fluid at greenschist facies temperature.

Q2 is a re-activation phase of the vein system. This resulted in intense brecciation of the existing quartz (Q1), cementation by new quartz (Q2) and the development of significant porosity of the veins. Q2 is recognized by its grey, translucent appearance and its breccia cement texture. Textural relationships indicate that Q2 was synchronous with the main phase of sulphide mineralization. Fluid inclusion and staple isotope geochemical studies have indicated that Q2 was precipitated from a magmatic fluid or from a fluid with a significant magmatic component.

Q3 is limited in occurrence to the larger, most intensely mineralized veins. It can be recognized in hand specimens as coarse, transparent euhedral crystals. The Q3 fluid is interpreted to represent evolved surface-derived water.

Q4 is only common in the thickest mineralized veins. It occurs as cement to anhedral/brecciated aggregates of pyrite and as thin syntaxial overgrowths on euhedral crystals. Q4 is synchronous with the late generation of sulphide and electrum mineralization infilling fractures in pyrite. Studies indicate that Q4 was precipitated from basinal brine.”

The following description of the vein system at Curraghinalt is reproduced from Tully (2005) who references Boland (1997).

“The quartz veins form a series of sub-parallel structures, which crosscut the Dalradian metasediments with a general strike of 090o - 135o, and dip at 55o - 77o to the north. They bifurcate, splay, and pinch and swell along strike and down dip and vary in thickness from less than 5cm to greater than 2m. The veins are well developed in the semi-pelites and psammites but have poor continuity in the package of ductile pelites and chloritic semi-pelites.

The vein system has been traced for 1.9-km along strike by drilling and/or trenching. Most of the drilling to date has been concentrated in the western half of this 1.9-km strike length and has delineated 7 main vein structures as follows:

1 - T17HW 2 - T17C 3 - T11F 4 - No. 1 5 - 106-16 6 - Attagh Burn Bridge (ABB) 7 - Sheep Dip

The veins vary in strike length from 100m to 500m and have been tested to a maximum of 160m down dip by the bulk of the drilling to date. One drill hole, CT-26 [04-CT-26], intersected the veins at a much greater depth. (The intersection in the No. 1 vein was at approximately 400m below surface). In the eastern half of the deposit numerous other veins have been intersected in trenches and wide space drill holes, but substantial additional drilling is required before these veins can be correlated.”

After the completion of Tully’s work several more infill drill holes were completed. They are discussed in Section 11 and used in the 2007 resource estimate and in the resource estimate presented in this report.

Tully (2005) presents the following individual vein descriptions.

“A brief description of the veins developed to date is as follows:

T17HW Vein - The vein is located on the northern side of the Kiln Shear, approximately 245m south of the Sheep Dip Vein. It intersects the E-W trending Kiln Shear at its SSE end where it is visible in the T17 drift. The vein strikes WNW and dips 60o - 65o to the north. It has been traced along strike for about 250m and has been intersected in 45 drill holes, and one underground hole, and developed by 200m of drift. Drilling has tested the vein to an elevation of 70m (160m below surface). The vein is well developed, with good continuity in the semi- pelitic lithologies, which were intersected in the initial 110m of the T17HW drift. The vein is

offset by 1 to 2 metres in a number of places by NE trending cross faults. West of 256980E the lithology is dominantly a pelite and there is very poor vein development or continuity.

T17C Vein - The vein is located on the southern side of the Kiln shear approximately 22m south of T17HW Vein, and trends 110o - 115o when close to the Kiln Shear, and swings slightly to 115o - 120o at its southern extent. The vein dips between 60 - 65o to the north and has been traced for 400m along strike. The vein has been intersected in 7 surface trenches, 4 underground drill holes and 24 surface drill holes.

T11F Vein - The vein is located between T17C and No. 1 Vein and was previously considered to represent a tensional vein between T17C and the No. 1 Vein. The recently completed structural interpretation of the vein strongly supports the concept that the bulk of this vein represents a faulted extension of the No. 1 Vein. The T-11F vein now exists as a short strike length vein occurring on the south side of the Kiln Shear that has a strike of 125o - 130o and dips between 60 - 65o to the north. It has been traced along strike for 80 metres and to a depth of 40 metres below surface. The vein has been defined by 8 drill holes. The vein remains open to the west and probably will merge with the 17C vein.

No. 1 Vein - The vein is located 70m south of T17C Vein and strikes 110o - 115o and dips between 60 - 65o to the north. It has been tested by a total of three trenches, 57 surface drill holes, one underground drill hole and 95m of drift, plus one raise. The vein has been traced along strike for approximately 450m.

106-16 Vein - The vein is located approximately 80m south of the No. 1 Vein. The vein strikes 110o - 115o and has a variable dip of between 50 - 65o north. The vein has been traced for a length of 480 metres along strike, and to a depth of 160m below surface. The vein has been tested by 40 drill holes.

Attagh Burn Bridge Vein (ABB) - This is the westernmost vein drill tested within the deposit. The vein either represents the western extension of the 106-16 Vein or is an offset of the # 1 Vein, or is a separate entity. It strikes 110o - 115o and dips 60 - 65o to the north and has been tested by drilling and surface trenching for 260m. It has been tested by 4 surface trenches and 22 drill holes to a depth of 130m below surface. The vein remains open to depth and to the west. Drill hole CT-26 has extended the known depth of the vein to a depth of 215m below surface.

Sheep Dip Vein - The vein is the northernmost vein in the system. It has been accessed by a short drift from underground, near the collar of the adit and has a defined strike length of 200m. The vein strikes 110o - 115o and dips between 60 - 65o to the north. It has been tested by 9 drill holes and traced to a depth of 70 metres. The vein remains open to depth and to the east and west.”

9.2 THE TYRONE VOLCANIC GROUP

Williams (personal communication, December, 2009) has provided the following list of anomalous areas in the TVG on the DG2 licence. Their locations relative to the DG2 boundaries are shown in Figure 9.1.

“A number of anomalous areas have been defined by the exploration completed to date. These include from NE to SW:

1. Tullybrick (273250E, 390000N) The area contains bleached and sericitized tuffs with reported minor fuchsite over several hundreds of metres of section. These contain disseminated pyrite grading up to 5% and a maximum gold value of 2.78 g/t Au.

2. Bonnety Bush (272500E, 388750N) Much of the area is moorland with limited rock exposure. However, there is good exposure of the jasper, magnetite ferruginous chert that marks the top of the Cycle 2, Bonnety Bush-Glencurry Formation. The main target area is located to the north of this. However, there are a number of targets south of the top of the Cycle 2 volcanics that were highlighted by the MPM study that warrant investigation.

3. Crocknahala (266600E, 387000N) This northeasterly trending area may be on the rhyolite horizon, no outcrop was seen. The presence of much tonalite float, some of it sheared, may indicate that the tonalite extends further northeast than shown on published maps. Trenching to test anomalous geochemistry intersected 1.5m @ 4.36 g/t Au in tectonized tuffs.

Figure 9.1 Tyrone Volcanic Group Mineralized Locations

4. Aghascrebagh (261000E, 383400N) to Greencastle (258250E, 382200N) The area is between the tonalite and the Omagh Thrust and contains altered tuffs with disseminated

pyrite-galena-sphalerite-chalcopyrite mineralization. Drilling in the area has intersected siliceous tuffs with maximum values of 0.5m @ 2% Pb/Zn and 0.5 g/t Au.

5. The Formil (Cashel) Copper Prospect (262000E, 382200N) Exploration by Riofinex in the 1970s established the presence of low-grade copper porphyry-type mineralization at Formil (Cashel) and additional low-grade copper mineralization was intersected further west.

At Formil, drilling by Ennex was in quartz porphyry within an area of argillic alteration. At the contiguous Slievemenagh copper occurrence drillhole H-7 (Riofinex) intersected northwesterly dipping mineralization, 94.2m @ 0.16% Cu, including 1.83m @ 0.32% Cu, in banded mesocratic, dark, tuffs cut by small acid and intermediate intrusions. The tuffs are silicified near the intrusions. Mineralization reportedly occurs as veinlets and blobs in quartz veins or as disseminations in the surrounding rock.

About 3km west-southwest of Formil, Riofinex intersected further low copper values. Here drillhole H-2 intersected 39.6m @ 0.17% Cu in tuffs with coincident copper soil anomalies, drillhole H-4 intersected 46m @ 0.12% Cu in tuffs and drillhole H-6 intersected 24m @ 0.17% Cu in tuffs.

6. The Cashel-Leaghan (Cashel Rock) Gold Prospect (258950E, 380100N) In the 1980s Ennex discovered and drilled the Cashel-Leaghan (Cashel Rock) gold prospect. The prospect was discovered by geochemistry / prospecting and tested by trenching / drilling.

Significant gold was outlined by Ennex (max. 3.63m @ 30.5 g/t Au, including a 1.23m interval @ 1.14% Cu and 1.85% Pb), along a 100m zone of silica flooding within rhyolite flows. The silica zone, about 2m thick, dips west at 30º and may occur along a flow top or alternatively at the contact between a felsic intrusion and a rhyolite flow.

7. Murrins (256000E, 377500N) This area is located to the SW of the Cashel-Leaghan gold prospect and occurs in an area with extensive gravel development with a number of operating sand and gravel pits and no bedrock exposure. No rhyolite is mapped as occurring beneath the sands/gravel but rhyolite may exist here on the northern side of the tonalite and this would enhance the potential of the target area. A further positive aspect is that if the tonalite, which dilates the section, is abstracted it brings the Murrins area into close depositional proximity with the Loughmacrory quartz porphyry.

8. Mountfield (253600E, 378000N) to Glencurry (251000E, 377000N). The volcanics in this area are located between the rhyolite and the graphitic pelite that occurs along the Omagh Thrust. The bedrock exposure in the area is very limited but prospecting in the area in the 1980s located tuff float with disseminated sphalerite.

9. Loughmacrory (259000E, 377300N). This target area is located at the top of Cycle 1 and straddles the area between the Loughmacrory quartz porphyry and the tonalite to the north. A large boulder of rhyolite volcaniclastic occurs in a dry stone wall of a laneway, near the foot of the hill. There is a suggestion that the quartz porphyry may have vented onto the sea floor in this vicinity, thereby creating a favourable environment for the deposition of massive sulphide deposits. If this is so, it makes areas south of the tonalite more prospective than would otherwise be the case.”

Beaghbeg (see Figure 9.1) is another important anomalous area in the TVG. At this location surface jasperoid and rhyolite breccia outcrops have been identified. Soil sampling by Ennex has identified soil geochemical anomalies with anomalous levels of copper, lead, zinc and gold.

Crosh is a possible gold exhalite target where silicified volcanics and black shale gold mineralization have been found. Grab samples in siliceous tuff have returned gold values of 0.57, 0.42 and 0.37 g/t. Soil sampling by Ennex has also discovered anomalous levels of copper, lead, zinc and gold.

Although the TVG has been recognized as a terrane suitable for the possible discovery of VMS-style mineralization, and some supporting evidence has been found, no massive sulphide mineralization of volcanic origin is known to have been discovered to date. Analogies with the TVG have been drawn above to the host rocks of the Buchans, Newfoundland area. The following description of Buchans type ores is taken from Thurlow and Swanson (1981).

“The Buchans group is a regionally extensive calc-alkaline volcanic suite erupted at a point in time near the Ordovician-Silurian boundary. It is subdivided in Lower and Upper Subgroups, each of which consists of interbedded mafic to felsic pyroclastics, flows and breccias.

The Buchans ores are high grade Kuroko-like polymetallic massive sulphide deposits associated with submarine felsic volcanic rocks near the top of the Lower Buchans Subgroup. Three genetically related ore types occur: stockwork ore, in situ ore and mechanically transported fragmental ore. Stockwork ore consists of networks of veinlet and disseminated base metal sulphides within highly silicified and locally chloritized host rocks. In situ ore lies stratigraphically above stockwork mineralization and is composed of banded to streaky yellow ore, black ore and barite. Transported ore consists of discrete orebodies composed of sulphide and barite fragments which were derived from in situ ore, transported by density flows and deposited in paleotopographic depressions. They maintain ore grade at distances greater than 2 km from the source area, well beyond the limits of stockwork mineralization and related alteration.

The Buchans ores are outstanding among massive volcanogenic sulphides because of their very high grade and the extensive development of mechanically transported fragmental ores.”

Thurlow and Swanson (1981) report that 17,426,000 tons of ore grading 14.62% Zn, 7.60% Pb, 1.34% Cu 3.69 oz/ton Ag and 0.043 oz/ton Au had been mined from five major orebodies in the Buchans area. Strong (1981) reports that ores commonly contain pyrite, chalcopyrite, sphalerite, galena, quartz, barite and calcite. The sphalerite is very low in iron (<1%) and the silver occurs essentially in tetrahedrite and not galena.

10.0 EXPLORATION

The exploration programs carried out by Ennex between 1983 and 1997 have been described in Section 6, above. Between 1997 and 2002, little if any work was undertaken on the property during a period of relatively low metal prices and poor markets.

Following the option agreement of 2003 between Tournigan and Strongbow, Tournigan carried out geochemical and geophysical surveys, mapping and prospecting and a 26-hole diamond drilling program.

10.1 TOURNIGAN EXPLORATION, 2003 - JANUARY, 2005

The following description of Tournigan’s exploration work is taken from Tully (2005).

“Tournigan started exploring the property in April, 2003 and has completed geochemical and geophysical surveys, plus mapping and prospecting programs as well as a 26-hole diamond drilling program on Curraghinalt.”

10.1.1 Geochemical Sampling

“Tournigan collected 2,910 soil samples from north south oriented grid lines on 100m centres along the Curraghinalt trend. Samples were collected at a depth of 50-75 cm, roughly the B- soil horizon, on 30m spacing along the lines. The area covered included the area to the north of the known vein structures, as well as in both directions along strike from the known veins.

Many anomalous areas were identified in the sampled areas, indicating the continuity of the vein structures along strike as well as the possible presence of additional veins to the north of the known veins. The main targets identified cover several areas north, northwest and northeast of the adit that combined, measures 1.5-km north to south and which extends for approximately 1.0-km along strike. This area represents 419 sample points with values ranging from 400 - 12300 ppb Au, plus 5 smaller areas with similar values. These areas outside the immediate area of the known veins will require follow-up deep overburden sampling plus diamond drilling to develop the individual vein structures.”

10.1.2 Geophysics

“An attempt to conduct a VLF survey over the grid area was eventually abandoned when the Cuttler Maine transmitter station was shut down. A total of 652 readings taken at 30m spacing along 100m spaced lines were completed prior to the shut down of the Maine station. The results were inconclusive. The Rugby station, located in the UK was never turned on during the time of the survey.”

10.1.3 Geology

“Tournigan has completed preliminary mapping and prospecting throughout the license area. One of the discoveries resulting from this work is the Alwories Vein, located 2.5 km southeast of Curraghinalt. Previous work in this area had identified float samples of vein material only. Vein outcrop was mapped in a newly developed rock quarry. Hand stripping subsequently

revealed a 50-cm wide vein that averaged 15 g/t Au. The Alwories vein is a quartz-sulfide vein very similar to the veins that comprise the Curraghinalt deposit. Future work in this area will include detailed stripping and sampling, detailed mapping and possibly follow-up diamond drilling.”

10.2 TOURNIGAN EXPLORATION FROM JANUARY, 2005

The drilling programs carried out by Tournigan since the preparation of Tully (2005) are described in Section 11, below.

Tournigan’s exploration program up to the time of writing of the Tully report is described in Tully (2005). Tully concluded:

“The work completed by Tournigan to date [i.e., to the date of Tully’s report in January, 2005] has consisted of 26 diamond drill holes (4,391m) on the Curraghinalt deposit, 7 holes [drilled] on the Glenlark project area (NE of Curraghinalt) for a total 830.5m, shallow depth geochemical surveys, detailed compilation work, plus one trench (228m) and a satellite imagery analysis of the area.”

Tournigan’s exploration work on the property, starting in April, 2003 was carried out by its subsidiary, Dalradian Gold. Aurum, based in Kells, County Meath, Ireland, provided local project management services and technical staffing for the project.

Tully reported that Tournigan completed 33 HQ drill holes between 2003 and January, 2005. Of these, seven were drilled in the Glenlark area and 26 infill holes were drilled in the Curraghinalt deposit.

Infill drilling, holes 03-CT-05 to 04-CT-26, was completed on the central resource block.

In 2005, Tournigan completed two diamond drill holes in the area of the Crows Foot-Bend structural zone (05-CT-27 and 05-CT-28).

In June, 2006, a 24-hole program of infill drilling was completed on the Southeast Extension target.

A program of underground structural mapping and sampling was undertaken by consultant structural geologist, John Cuthill in 2002-2003. The T17 and No. 1 drifts were the principal areas of emphasis. Tully (2005) reported on the structural analysis as follows:

“The data suggests that faulting has played a significant role in ground preparation within the vein structures. The faulting appears to have facilitated the injection of the Q4 style sulphide rich quartz veining material in the veins where they are in close contact with the Kiln Shear. The high-grade nature of most of the drill holes piercing the T17HW vein in the area where the vein intersects the Kiln Shear suggests a high-grade shoot in this area.

Similarly, the apparent low-grade sections occurring within the plane of the veins can be shown in some cases to be associated with the pelite horizons that tended to deform

plastically, rather than in brittle fashion. … The presence of the pelitic units has resulted in rather “tight” rock conditions that have inhibited the injection of quartz veining. Within these low-grade horizons mostly barren to low grade Q1 quartz has formed. The nature of the enclosing rock has prevented the formation of Q2 and Q4 gold bearing veining. Consequently the quartz veining within these semi-pelite units tend to contain only narrow, Q1 relatively barren quartz. Since stratigraphy strikes NE, and dips at a moderate angle across the NNW striking vein sets, the low grade intervals are created by the pelitic units where such units intersect the strike of the veins.”

The location of holes drilled by Tournigan between 2003 and 2007, and the adit developed by Ennex, are shown on Figure 10.1.

Figure 10.1 Location of Holes Drilled by Tournigan

Map provided by Tournigan.

Data from trench samples have not been digitized and precise sample locations have not been mapped. No data from trench samples have been used in the present mineral resource estimate.

Tournigan planned to collate the data from trench sampling but to Micon’s knowledge this was not completed.

10.3 TOURNIGAN EXPLORATION 2007 TO 2009

After completion of the 2007 Micon resource estimate for Tournigan (Mukhopadhyay, 2007), the company completed several more drill holes at the Curraghinalt deposit. The results of

that work are discussed in Section 11 below. After cessation of drilling at Curraghinalt Tournigan had Aurum engage in a small program of data compilation, prospecting and sampling on the DG3 and DG4 licence areas. Williams (2009) describes the work completed as follows:

“Geological Data - Geology, Prospecting and Sampling

All available historical data (which includes geological mapping, field prospecting and geochemistry) was collected and catalogued during the earlier phases of work. This data was re-assessed and new data, where possible, was added to the database. This data included outcrop data, prospecting data, and general geological data.

Historical prospecting had previously identified several areas where significant auriferous quartz vein material was evident either in bedrock or float. The results ranged between 15- 30g/t Au in the Rylagh area, >100g/t in the SW corner of TG-3 at Bessy Bell, and 187g/t Au in Glensass Burn on TG-4.

Satellite imagery completed by Tournigan in 2004 identified structural trends on TG-3 and TG-4 which are very strongly analogous to those at Curraghinalt, and along with the anomalous geochemistry that characterizes the area, several important target areas have emerged.

Geochemistry - Stream Sediments \ Panned Concentrates

All existing geochemical data was compiled for the TG-3 and TG-4 licences and this included panned concentrate data collected historically by Ennex, and also British Geological Survey (BGS) stream sediment data. This data was compiled and re-evaluated in the target generation.

Ennex also carried out detailed panned concentrate surveys on TG-4 [DG4, the licence bordering DG1 to the north], in an area around Plumbridge and Eden Hill. Several very anomalous streams had been identified with values up to 97-105 ppm Au in panned concentrates. No equivalent data sets for historical panned concentrate have so far been located for TG-3.

Geophysics

Since the last renewal period, the Geological Survey of Northern Ireland released the Tellus Airborne Geophysical Survey Data for Northern Ireland. This data was purchased and work was carried out in-house by Aurum Exploration Services using this Geophysical database to interpret geological features including faults, conductive units and specific anomalous targets.

Geological Appraisal

Licences TG-3 and TG-4 [DG3 and DG4] have a significant potential to host Curraghinalt style mineralization as well as several other distinct styles, most of the licence area is underlain by Dalradian metasediments interbedded with volcanics and intrusive lithologies. Structurally there are some major features known both historically and through more recent satellite imagery work and also through interpretive use of the Tellus airborne geophysical

data. There have been several reported float and outcrop occurrences of gold mineralization and also the high level of anomalism for gold within the panned concentrate surveys carried out by Ennex in the 1980’s.

Work during the last reporting period 2005 - 2007 concentrated primarily on the stream sediment geochemical data set and detailed basin analysis work was carried out on the anomalous drainage basins. Limited follow up shallow soil geochemistry failed to identify a mineralizing structures associated with these very high values and though most evidence has started to point to a glacially derived origin for this alluvial gold. A buried bedrock source however still cannot be ruled out.”

Aurum has identified several targets for follow-up work but this exploration program has yet to be completed.

10.4 DALRADIAN RESOURCES EXPLORATION

As of the time of Micon’s second site visit in 2009, Dalradian Resources had completed no mineral exploration on the Curraghinalt property. Aurum had been retained by Dalradian Resources to continue with management of the exploration activities at the project and compilation, analysis and project planning work was underway.

11.0 DRILLING

11.1 TOURNIGAN DRILL PROGRAMS

Irish Drilling Limited (Irish Drilling) was contracted to carry out all drilling on the Curraghinalt area property on behalf of Dalradian Gold/Tournigan and, according to Tully (2005), was one of the principal contractors engaged by Ennex in the 1980s. Since 2002, Aurum has managed the drilling program carried out by Irish Drilling. The drilling programs have been designed primarily by Aurum and Tournigan structural geologist, John Cuthill.

Both Irish Drilling and Aurum are independent of Tournigan, Dalradian Gold and Dalradian Resources.

Drilling between 2003 and the date of the Micon resource estimate in 2007 is summarized in Table 11.1.

Table 11.1 Summary of Drilling by Year

Year Number of Holes Total Metres 2003 11 1,888 2004 15 2,500 2005 2 183 2006 15 2,827 2007 7 8,924 Total 50 16,321

For the period 2005-2007, up to the completion of the 2007 resource estimate, the metreage for each hole is shown in Table 11.2.

Table 11.2 Summary of Drilling 2005-2007

Drill Hole Number Metres 05-CT-27 84 05-CT-28 99 06-CT-29 240 06-CT-30 172.1 06-CT-31 150 06-CT-32 120 06-CT-33 149 06-CT-34 72 06-CT-35 263 06-CT-36 228 06-CT-37 264 06-CT-38 180 06-CT-39 146 06-CT-40 233.8 06-CT-41 207 06-CT-42 171 06-CT-43 231 07-CT-44 398 07-CT-45 131.3 07-CT-46 207.19 07-CT-47 75 07-CT-48 230.3 07-CT-49 195 07-CT-50 290 07-CT-51 185.5 07-CT-52 182 07-CT-53 501.1

Tully (2005) describes the program up to January, 2005 as follows:

“The drill type used for the Dalradian Gold program is a Boyles Brothers 37, mounted on a Go-Tract 1000, which allows access to boggy areas. The rig is operated on a 10-hour shift by experienced drillers and helpers. The core size is mostly HQ, although NQ has been utilized when necessary to allow continuation of drilling in difficult conditions when HQ-sized casing is required. Earlier drilling by Ennex produced both HQ and NQ sized core as well. Core recovery is very good and averages in the 95-98% range.”

Each drill site was fenced off prior to the start of drilling to keep livestock away from the rig. Personal protective equipment was used by drillers and visitors to the site.

Each drill site was located with GPS, staked and then photographed prior to the rig being moved in. The holes were surveyed by using an Encore “Reflexit” smart multi-shot tool instrument. Tully reports that a Tropari survey instrument was used for the first four holes in the Tournigan program. On completion of the drill hole, it was surveyed by Celtic Surveys Ltd. using the Irish National Grid, to the nearest centimetre. All holes have been cemented

except 04-CT-26, which was left open for potential future use. All sites were cleared on completion and re-photographed.

Dalradian Gold has two secure sheds that are utilized for core logging and storage. The shed at 76 Main Street, Gortin, is used for logging core. A larger shed outside Gortin is used for core storage. All sample material and pulps are kept in the shed in Gortin.

Figure 11.1 shows a schematic north-south section looking west with the intersections in drill hole 04-CT-26 and the possible mineralized extensions to principal veins.

Figure 11.1 North-South Schematic Section at 257000 E, Looking West

Section provided by Tournigan.

See Figure 10.1, above, for the locations of drill holes.

Drill hole statistics for the mineralized intersections and the zone codes are provided in Appendix 1.

For Micon’s previous Curraghinalt resource estimate, completed in 2007, the drill hole database was frozen at hole CT-53. After commencement of the estimate, drilling continued for four more holes, CT-54a, CT-55, CT-56a and CT-57. These were all deep holes intended to test the depth continuity of several of the veins. Appendix 1 has been updated to include intersections from the most recent drilling which have been used in the resource estimate presented herein. A summary of the drilling is presented in Table 11.3.

Table 11.3 Summary of Post 2007-Resource-Estimate Drilling

Drill Hole Number Metres 07-CT-54a 545.5 07-CT-55 633.2 07-CT-56a 663.1 07-CT-57 661

11.2 GEOLOGICAL LOGGING OF CORE

Drill core was logged to record lithology, structure, alteration, rock quality designation (RQD) and mineralization.

Core logging was carried out by a geologist assigned to the project by Aurum. The length of core brought from the drill site is confirmed against the drill report. Logging commences with calculation of core recovery. Geology is then marked with particular reference paid to the identification of mineralized zones. Structural data collected include orientation of mineralized quartz veins against the longitudinal axis of the core with particular care given to mineralized veins that are sub-parallel to the longitudinal axis. Alteration and RQD are noted.

Logging is carried out on paper with data then input into a series of digital data logs which are entered into the computer database with other drill hole data logs.

During its first visit, Micon recommended that all drill core be photographed in order to provide a record and to conform to accepted industry best practice. Tournigan initiated photography of all vein material immediately following the site visit in August, 2007 and, at the time of writing of the 2007 report, this was substantially complete. Figure 11.2 shows an example of mineralized drill core.

Figure 11.2 Quartz Sulphide Vein in Drill Core

Micon’s observation of core logging in 2007 showed it to be carried out to industry standards.

12.0 SAMPLING METHOD AND APPROACH

Tully (2005) described the sampling approach and methodology as follows:

“All quartz vein material in the known vein systems is sampled geologically. If a portion of a known vein contains a high portion of sulphide or quartz breccia it is usually sampled separately. Sample widths vary from 0.25 centimetres to 0.50 metres in primary vein and 5 cm to 15 cm in undefined smaller “satellite” veins. The sampling process was modified over time to include larger rather than smaller intervals.

In all major veins, two to four separate samples of the enclosing wall rock were taken at 0.25 m intervals on both the hangingwall and footwall of the vein.

In general core recoveries varied from 90 to 97%, and RQD’s were generally in the high 80’s or better, except in pelites and in fault zones. In general the core size was HQ which resulted in excellent recoveries and thus the samples are considered to be representative of the veins. … The overall recovery difference between NQ and HQ core was quite similar except when drilling in some pelitic units and major fault zones.

Intersected core lengths were converted to true widths by considering the intersection angle between the vein and the drill hole. In veins with sheared contacts, the angle between the drill hole and the internal mineral fabric was used. Where this was not possible the interpreted sections and plans were utilized and the interpreted angle of dip of the vein and the intersection angle of the strike of the vein to the section in plan were used to calculate the true width.”

Sampling of the HQ drill core commences once the core has been washed and logged by the site geologist. During the logging process the geologist marks the intervals to be sampled on both the core as well as the core box. The core is then orientated along the line of symmetry and sawn with a diamond saw. Once an interval is cut, both halves of the core are placed back in the box, and the next interval is sawn.

A sample ticket book is used to record sample intervals and a brief mineralogical description. Each sample is assigned an identifying number (as printed on each ticket) and the prefix “A”, creating a unique identifying number as a sample coming from the Curraghinalt deposit. A plastic sample bag is then clearly numbered with the matching ticket number placed inside with the split core. A duplicate ticket is stapled to the core box at the start of the sample interval above the remaining half core in the core box.

Once bagged, all the samples split during the shift are placed on the floor in numerical order. The supervising geologist seals bagged samples with steel wire ties, and an additional signed and dated tamper proof security tag is placed around the wire tie. The top of each bag is folded over the wire ties to protect the security tag. The assay laboratory … is notified that each sample should contain a security tag, and are instructed to inform the Curraghinalt office if any tags are missing. Occasionally a tag is purposely left off a non-mineralized sample, which is recorded on the sample interval sheet and checked against [the laboratory] notifications. The system has worked very well.

When all the individual samples have been counted, and the tag numbers verified, the samples are combined into large plastic bags for shipment to [the laboratory] by a courier service. ... Each larger bag of samples is sealed with a wire tag and an address label. [The laboratory] is requested to inspect the bags prior to opening, to determine if the bags have been tampered with.”

The QA/QC controls for the drilling, logging and sampling processes are shown in Table 13.1 which has been based on material provided by Aurum.

Table 12.1 Drill Set-up, Sampling Procedures and Controls

Procedure Comments Drill Rig Setup Drillers to set up rig. Check location of small ditch to be dug from the pierce point for the drill return water. Use a drainpipe to funnel water initially to a barrel to collect primary returns (first barrel captures approximately 70-80% of the returned material). The overflow from the first barrel should go via pipe into the next barrel; second barrel catches a further 10-20% of the returned material; overflow from the second barrel should go into a sump dug in the base of the ditch. Use straw bales to catch additional suspended material. Drill rig to be checked daily (early afternoon); vein material, in core box, to be taken directly to core logging shed. Drillers to deliver drill core to the logging shed each evening unless collected by the geologist. Drill Core Approximate depths to be reported as core comes in for ongoing section correlation. Logging Sequence of core boxes to be checked for correct order; boxes to be checked for correct labelling. Core markers to be checked every 3 m. Core loss to be checked if markers are not evenly spaced. Orientate drill core so that the general schistocity is consistent. Complete RQD on every 3-m run down the core using detailed recording sheet. RQD, joint frequency and orientation, roughness, joint infill, fractures, faults etc. to be recorded. Log lithology using pelite/semi-pelite/psammite system. Record host rock mineralogy/alteration. Record nature of hanging wall and footwall contacts. Log veins; measure hanging wall and footwall contact angles if natural and not faulted. Record mineralogy in detail; identify zoning/banding. Separate vein into areas of similar mineralogy and percentage sulphides. Log structure and alteration. Enter data into digital data book on an ongoing basis. Sampling Orientate the core. Mark sample boundaries using mineralogy and percentage sulphide as guidelines. Record intervals on sample sheet. Sample main veins at 1.25-m intervals. Split the actual vein width only if vein intercept is less than 10 cm. Maximum sample width 0.25 m. Insert one standard packet as a sample amongst each main vein; approximately 20% of all samples per hole. Insert one blank sample of drill core as a sample amongst each main vein; approximately 20% of all samples per hole. Photograph sampled vein intervals once sampled drill core has been returned to shed. Surveying Drill Complete survey using Aurum survey pad coded to the Flexit tool; each pad relates to an Hole individual tool.

During its 2007 site visit Micon confirmed that the above procedure remained in place at Curraghinalt.

13.0 SAMPLE PREPARATION, ANALYSES AND SECURITY

13.1 SAMPLE ANALYSES

Tully (2005) describes sample analysis at Curraghinalt as follows:

“OMAC Laboratories (OMAC) assay all of Tournigan’s samples and their lab facilities are located in Loughrea, Republic of Ireland. OMAC is a facility that is ISO 9001:2000 certified. The lab has also been certified according to the criteria for laboratory proficiency established by the Accreditation Sub-committee Working Group for Mineral Analysis of the Standards Council of Canada on March 31, 2004. The lab has maintained an excellent reputation over the years. All samples are fire assayed with an AA finish. A brief description of the assaying procedure utilized by OMAC is included in Appendix C [of Tully (2005)].”

The data provided in Appendix C of Tully (2005), in regards to the sample preparation and analytical methods used at OMAC are shown in Table 13.1.

Table 13.1 OMAC Laboratory Assay Procedures

Procedure Procedure Code P5 Dry Crush to <2 mm using Rhino jaw crusher Riffle 1 kg and pulverize to 100 µ using Bico pulverizer Au4 50 g sample fused with lead oxide/carbonate/borax/silica/flux at 1,100oC using silver a carrier Fusions producing lead buttons <30 g are rejected After de-slagging, buttons are cupelled at 950oC Prills are parted in dilute nitric acid and finally dissolved in aqua regia Read by flame AA to 0.01ppm using a Varian Spectr AA 55 AA instrument Samples run in batches of 50 consisting of a) 48 samples, b) blank and in-house standard or international reference material 10% of the samples repeated subsequently by Au5 Au5 30 g of sample is ignited at 650oC for 2 hours Digested as Au1 Read as Au1 to 0.01 ppm detection Samples run in batches of 40, each batch containing an in-house standard or international certified reference material 10% of the samples repeated subsequently by [Au1] Au1 25 g of sample is ignited at 650oC for 2 hours Digested with concentrated aqua regia for 1 hour Extracted with MIBK and backwashed with diluted HCl to remove Fe Read by flame AA to 2 ppb detection Samples run in batches of 40 consisting of a) 37 samples, b) blank and in-house standard, c) composite of the 37 samples to which a known quantity of gold is added and taken through the procedure as a validation check 10% of the samples repeated subsequently

OMAC joined the Alex Stewart Assayers group in 1999 and operates as its principal exploration laboratory. OMAC states that it is accredited to ISO 17025 by the Irish National

Accreditation Board (INAB). ISO 17025 relates to general requirements for the competence of testing and calibration laboratories. INAB is a member of the International Accreditation Cooperation (ILAC) and is a signatory to the ILAC Mutual Recognition Arrangement whose signatories include Canada, the United States, Australia, South Africa, Japan and countries of the European Union, among others. OMAC states that its accreditation schedule can be accessed through the INAB website under Registration No. 173T (www.inab.ie).

OMAC participates in twice-yearly round robin programs run by Geostats of Perth, Australia, and under the Proficiency Testing Program for Materials Analysis Laboratories (PTP-MAL) run by CANMET in Canada. (See www.omaclabs.com/QA-QC.htm).

Micon confirmed with the site geologist and a director of Aurum, and representatives of Tournigan during the 2007 site visit, that the procedures described by Tully for sample preparation and assaying remain in place.

13.2 SAMPLE SECURITY

All logging was completed in a rented, lockable, industrial building on the main street of Gortin, across the road from the field office. Core was sawn at a nearby farm and unmineralized core boxes are stored in a concrete-floored barn at that location. Mineralized sample boxes are returned to the industrial building where they are kept under lock and key. Unshipped samples were also stored at this location. Aurum has a representative in the Gortin area responsible for looking after the facilities.

13.3 QUALITY CONTROL AND QUALITY ASSURANCE

Tully (2005) describes sample QA/QC procedures as follows:

“Quality control is maintained by inserting a blank sample of limestone drill core from the midlands of Ireland (Lisheen area), known to contain no gold, after each mineralized interval, and given the next sequential identifying number. This sample is recorded as a “blank” in the ticket book. At least 15% of the samples submitted are “blanks”.

In addition, Tournigan uses six different standards of known gold grade that it submits as control samples. The standard name is recorded in the sample ticket book and when the assay results from the lab are received, they are compared with the known grade of the standard. … The results from the “Standard” check analysis have agreed very well.

Sample pulps are returned to the mine office in Gortin once analysis is complete. Fifteen to twenty percent of the returned pulps are reanalyzed. These samples are sent back to OMAC [Laboratories] for re-analysis under a new sample number. A recent change to the procedure is to send half of the duplicates to OMAC and the remaining half of the 20% to an outside laboratory as an additional check on OMAC.

Drilling carried out in the Curraghinalt area totals about 27,299 m, up to August 15, 2007. In addition, a total of 470 m of underground workings was carried out from an adit developed by Ennex and which included drifts, cross-cuts and raises. This drifting helped confirm

continuity of mineralized structures. After August 15, 2007 an additional 2,502.8 m of core were drilled in the final four deep holes.

Assaying for all drilling completed by Tournigan has been carried out by OMAC at its facility at Loughrea, County Galway, Ireland. Prior to Tournigan’s programs, assaying was carried out by Ennex at its internal laboratory which is referred to in this report as the Ennex Laboratory.

Out of the total 27,299 m drilled, 8,923 m of drilling was carried out during 2006-2007. Tournigan’s QA/QC program consists of assaying of blanks, reference materials, duplicate samples, and re-assay of samples in a reference laboratory. Check assaying undertaken by Tournigan has included samples from the Ennex drill programs assayed at the Ennex Laboratory. The details of samples assayed as part of Tournigan’s QA/QC program are given in Table 13.3.

Table 13.2 Details of Quality Assurance/Quality Control Samples

Number of Type of QA/QC Samples Samples Blanks 315 Standard 134 Duplicate 174 Re-assay at External Laboratory 43

As part of its review of the quality control data, Micon conducted a number of checks to assess precision, accuracy and bias. This is described in the following sections of the report.

13.3.1 Blanks

Blank samples form part of all analytical quality control procedures and are used to assess the accuracy of the assay results and to identify any possible contamination and mixing during analysis. A total of 315 blanks were inserted along with other samples. As blanks are close to the detection limit of the laboratory, it is expected that the error in analysis at that level can be +50%. There are two blanks which had considerable error and these are designated as outliers. All the results were plotted in Figure 13.1. The accuracy of the blanks is within an acceptable limit of error.

Figure 13.1 Results for Blanks Analyzed by Ennex Laboratory

) 0.1

Grade (g/t Au 0.01

0.001 0 50 100 150 200 250 300 350 No. of Samples

13.3.2 Standard Samples

A total of six different types of reference materials were used to check the accuracy of assays. All standards were acquired from CDN Resource Laboratories Limited (CDN Resource). The average value for each standard along with its tolerance is given in Table 13.4. A total of 134 standard samples were submitted along with the drill hole samples. The average value for each of the categories is given in Table 13.5. It may be seen that there is no significant bias while analyzing the standards. This indicates that the assay results would not have any significant bias. All the results for analyzed standard samples along with their certified value and acceptable range of standard deviation are plotted in Figures 13.3 to 13.8. An error plot (Figure 13.2) was also compiled considering all the standards with the mean recalculated to zero and deviation plotted against the mean.

There are some outliers from assays of standard samples that are beyond the acceptable limit of 2 standard deviations but these do not indicate bias or misallocation. Micon had recommended that Tournigan reviews the outliers and, if necessary, re-assays the complete sample batch. Micon has been informed that exploration at Curraghinalt ceased shortly after this recommendation was made and it has not been carried out.

Overall, Micon considers that the results are within the acceptable range of error.

Table 13.3 Certified Value of CDN Resource Standard Samples

CDN- CDN- CDN- CDN- CDN- CDN-

GS-11 GS-5A GS-14 GS-12 GS-15 GS-20 Mean 3.4 5.1 7.47 9.98 15.31 20.6 +/- 2 Standard Deviation 0.27 0.27 0.31 0.37 0.58 0.67 Standard Deviation % of Mean 8% 5% 4% 4% 4% 3% Number of Samples 84 84 84 84 84 84

Table 13.4 Analyzed Value of CDN Resource Standard Samples

CDN- CDN- CDN-GS- CDN- CDN- CDN-

GS-11 GS-5A 14 GS-12 GS-15 GS-20 Mean 3.45 5.05 7.56 10.16 15.30 20.61 +/- 2 Standard Deviation 0.15 0.29 0.55 0.88 1.14 1.06 Standard Deviation % of Mean 4% 6% 7% 9% 7% 5% Number of Samples 19 20 29 20 27 19 Bias 1% -1% 1% 2% 0% 0%

Figure 13.2 Error Plot for the Standard Samples Used by OMAC

80%

e 70%

60%

50%

40%

30%

20%

10%

-10% % Difference theto Standard Valu -20% 0 20406080100120140160 No. of Samples

Figure 13.3 Repeatability by OMAC on Reference Material (3.4 g/t Au)

3.80

3.70 +2 Std. Deviation 3.60

3.50

3.40 Grade (g/t Au) 3.30

3.20 -2 Std. Deviation 3.10 02468101214161820 No. of Samples

Figure 13.4 Repeatability by OMAC on Reference Material (5.1 g/t Au)

5.50

5.40 +2 Std. Deviation 5.30

5.20

5.10

5.00 Grade (g/t Au) (g/t Grade

4.90 -2 Std. Deviation 4.80

4.70 0 5 10 15 20 25 No. of Samples

Figure 13.5 Repeatability by OMAC on Reference Material (7.47 g/t Au)

8.40

8.20

8.00 ) 7.80 +2 Std. Deviation

7.60

7.40 Grade (g/t Au

7.20 -2 Std. Deviation

7.00

6.80 0 5 10 15 20 25 30 35 No. of Samples

Figure 13.6 Repeatability by OMAC on Reference Material (9.98 g/t Au)

11.40

11.20

11.00

10.80

) 10.60

10.40 +2 Std. Deviation 10.20

Grade (g/t Au 10.00

9.80 -2 Std. Deviation 9.60

9.40

9.20 0 5 10 15 20 25 No. of Samples

Figure 13.7 Repeatability by OMAC on Reference Material (15.31 g/t Au)

16.5

16 +2 Std. Deviation

) 15.5

15 -2 Std. Deviation

Grade (g/t Au 14.5

13.5 0 5 10 15 20 25 30 No. of Samples

Figure 13.8 Repeatability by OMAC on Reference Material (20.6 g/t Au)

22.00

21.50

+2 Std. Deviation

) 21.00

20.50

Grade (g/t Au 20.00 -2 Std. Deviation

19.50

19.00 02468101214161820 No. of Samples

13.3.3 Duplicate Samples

A total of 174 samples were re-assayed as part of the internal quality control by OMAC. A scatter plot (Figure 13.9) was generated to understand the relationship between the original assays and the repeat assays. The plot clearly shows good repeatability of original samples during re-assay.

Figure 13.9 Scatter Plot Between Original and Re-submitted Samples

1000.00

100.00

10.00

1.00

0.10 Repeat Assay (g/t Au) (g/t Assay Repeat

0.01

0.00 0.001 0.01 0.1 1 10 100 1000 Original Assay (g/t Au)

An error plot was generated to understand the degree of error of individual samples between the original samples with the repeat samples. This was done by plotting the mean of the two results with the absolute difference to the mean. The plot is shown in Figure 13.10. The plot clearly indicates that most of the samples are within 10% error range with very few crossing the 25% error range. The samples outside the 25% error range are relatively low grade and it would be expected that the repeatability of low grade samples would be subject to higher error.

Forty-three samples were also sent to two external laboratories. These samples were selected from core previously drilled by Ennex and assayed at the Ennex Laboratory. One set was sent to OMAC in Ireland and another set was sent to ALS Chemex in Canada. There is almost no difference between the results of the two external laboratories with an excellent repeatability and a correlation coefficient very close to 1. The mean and standard deviation for the results of all the three laboratories is given Table 13.6.

Figure 13.10 Error Plot for Gold Assays

1000

ror Er 100 0% r 10 ro Er 0% ror 5 Er % 25 ror Er 10 % 10 ror Er 5%

1 Absolute to Difference Mean 0.1

0.01 0.1 1 10 100

Mean Au (g/t)

Table 13.5 Statistics of the Samples Analyzed by Ennex and External Laboratories

Ennex OMAC ALS Chemex Laboratory Laboratory Laboratory Mean 16.60 14.89 14.19 Standard deviation 21.84 23.48 22.80 Number of samples 42 42 42 Correlation coefficient 0.8 Correlation coefficient 0.996 Note: The correlation coefficient between Ennex and ALS Chemex is 0.78.

Although there is no misallocation of grade between the original and the repeat samples submitted to the external laboratories compared with results from the Ennex Laboratory, there appears to be a wider range in the repeatability of the samples. Scatter plots of the analytical results between different laboratories are shown in Figures 13.11 and 13.12. The discrepancy between the original Ennex assay and the two repeat samples by OMAC and ALS Chemex may be attributed to loss of core resulting from the use of a very small diameter core barrel. Taking this factor into consideration, however, the repeatability is reasonable and is acceptable for the purpose of the present resource estimate.

Figure 13.11 Scatter Plot for Comparison of Assays Between Ennex Laboratory and OMAC

1000.00

100.00

10.00

1.00 OMAC Assay (g/t Au) (g/t Assay OMAC

0.10

0.01 0.01 0.10 1.00 10.00 100.00 1000.00 Ennex Assay (g/t Au)

Figure 13.12 Scatter Plot for Comparison of Assays Between Ennex Laboratory and ALS Chemex

1000.00

100.00

10.00

1.00 Chemex Assay (g/t Au) (g/t Assay Chemex

0.10

0.01 0.01 0.10 1.00 10.00 100.00 1000.00 Ennex Assay (g/t Au)

Micon concludes that the QA/QC procedures conform to the industry standards and the data generated as a result are reliable and suitable for use in the present mineral resource estimate. No significant bias has been identified as a result of the above analysis and which warrants further study.

13.4 SPECIFIC GRAVITY DETERMINATIONS

Tully (2005) provided a tabulation of specific gravity (SG) determinations carried out by Tournigan in 2004. Two samples from drill core from each of the veins were sent to OMAC for specific gravity determinations by water displacement methods. Table 13.7 summarizes the specific gravity determinations for the veins as shown.

Table 13.6 Specific Gravity Determinations

Sample Number SG Sheep Dip Vein SD41 3.01 SD43 2.54 Average 2.78 Attagh Burn Vein (ABB) ABB34 2.49 ABB45 3.65 Average 3.07 106-16 Vein 17C-50 3.65 17C-11 2.86 Average 3.05 T17HW Vein 17HW-4 2.62 17HW-54 3.51 Average 3.07 T11F Vein T11F-14 2.90 T11F-28 2.97 Average 2.93 No. 1 Vein No1-21 3.16 No1-52 2.89 Average 3.03

During Micon’s site visit in 2007 it was suggested that additional specific gravity measurements be carried out, also using the water displacement method. A total of 159 additional measurements were carried out for use in the 2007 resource estimate. The average of results for each vein was calculated from the collected data and used in order to derive an estimate of tonnage.

A scatter plot was also generated in order to understand the relationship between gold grade and specific gravity. The plot is shown in Figure 13.13. The plot indicates no significant relationship between the gold grade and specific gravity. This result prompted Micon to use the average value of the specific gravity for each vein. The average values with standard deviation and number of samples for major veins are shown in Table 13.8. (See Table 17.2, below, for a correlation between the vein codes used by Tully (2005) and the present resource estimate). The specific gravity assigned for minor veins and veinlets is the same as for the major veins.

Figure 13.13 Plot of Gold Grade and Specific Gravity

6.00

5.00 ) 3 4.00

3.00

2.00 Specific Gravity (t/m 1.00

0.00 0.01 0.10 1.00 10.00 100.00 1000.00 Grade (g/t Au)

Table 13.7 Mean Specific Gravity and Standard Deviation of Measurements for Major Veins

Mean Specific Standard No. of Major Vein Code Gravity Deviation Samples (t/m3) 20 2.57 1 30 2.65 0.33 7 40 2.87 0.52 25 50 2.87 0.29 15 60 2.83 0.16 39 70 2.79 0.16 72 80 2.57 90 2.57 D 2.57 G 2.57

14.0 DATA VERIFICATION

Micon was provided with the drill hole survey data and is satisfied that they are suitable for the present mineral resource estimate.

The original drill hole data were provided to Micon by the site representative of Tournigan, Aurum. Aurum has also been retained by Dalradian Resources to manage the exploration program at Curraghinalt and the Tyrone project and it provided Micon with an updated database for the last four holes. As of the estimate in 2007, Micon had not carried out any drilling, collection of samples or independent assaying of material from the Tyrone property. Micon observed the procedures used for core logging, sampling and preservation but relied upon the data provided by Tournigan.

During the second site visit in 2009, Micon collected five samples to confirm the presence of gold and copper mineralization at the Curraghinalt deposit. A sixth sample was collected from silicified and mineralized outcrop at the Cashel Rock showing on licence DG2. The results of this sampling are set out in Table 14.1.

Table 14.1 Micon Check Samples

Sample Au Ag Cu Location Type No. (g/t) (g/t) (ppm) 75117 T17 Vein, Curraghinalt Underground grab sample 15.1 6.7 1,790 75118 T17 Vein, Curraghinalt Underground grab sample 4.2 4.0 2,150 75119 #1 Vein, Curraghinalt Underground grab sample 21.9 5.1 54 75120 Hole CT55, Curraghinalt Duplicate ¼ core sample 42.6 9.2 97 75121 Hole CT54a, Curraghinalt Duplicate ¼ core sample 45.2 9.0 25 75122 Cashel Rock Surface grab sample 8.71 10.9 555

The original Tournigan assay results for the duplicate quarter core samples 75120 and 75121 were 44.96 g/t Au and 23.68 g/t Au. The samples collected by Micon have confirmed the presence of gold mineralization at the expected grade ranges on both the DG1 and DG2 licence areas.

The checks carried out by Micon confirm the logging procedures utilized at the Curraghinalt site. All drill core is stored in wooden boxes with proper numbering to indicate the drill hole number and metreage. Random checks were carried out by Micon on the stored core and no discrepancies were identified.

The drill hole database is maintained in Microsoft Access for integration into Datamine and work is carried out at Aurum’s offices in Ireland. Regular checks are performed there to ensure that there are no errors in data entry. Assay results are provided in Excel files from OMAC, thereby allowing direct electronic data transfer. This eliminates any potential error arising from manual data entry.

Micon utilized the data verification protocols available in Datamine software to check the database for errors such as transposed or crossed from and to entries for sample intervals, or incorrect entries in data fields.

The data submitted to Micon appear reliable in light of the checks it has carried out. Micon has not independently verified the statements and data contained in historical reports or in assay data provided to Micon for the purpose of this mineral resource estimate, other than those steps described herein.

15.0 ADJACENT PROPERTIES

Tully (2005) lists the following adjacent properties to the Curraghinalt deposit, Cavanacaw, Golan Burn and Glenlark.

The Cavanacaw deposit, also known as the Kearney deposit is located on the 189 km2 licence OM 1/03 held by Galantas Gold Corporation (Galantas). Galantas reported work including diamond drilling, extensive overburden stripping and bulk sampling. An historical resource estimate was prepared by ACA Howe International Limited reported by Galantas as a “Proven/probable Ore Reserve in the Omagh deposit of 367,310 tonnes grading 7.52 grams per tonne gold over a width of 4.43 metres” within an area proposed for an open pit mining operation. (See www.galantas.com/corporate/s/Omaghc02b.html).

At the time Galantas planned to bring the property into production and to manufacture and sell gold jewellery made from the gold certified as 18-carat Irish gold jewellery. The property is reported to be producing now at a small scale.

Micon has not verified the information this information and it is not necessarily indicative of the mineralization on the Dalradian Resource’s property.

The Golan Burn property is located on the northwest corner of DG1. Tully (2005) describes the Golan Burn property as follows:

“At least four, thin auriferous base-metal sulphide veins are present at Golan Burn, 4-km northeast of Gortin, County Tyrone. The veins cut the Neoproterozoic Dalradian Glenelly Formation (South Highland Group) that is composed mainly of calcareous, pale-green to white tourmaline-rich schistose semi-pelite and medium- to coarse-grained psammite. The veins are west-northwest trending and are traceable 600 m along strike. The strike of the vein system projects ESE, directly towards Curraghinalt. Typically the quartz-carbonate-sulphide veins do not exceed 0.5 m in width, however where the vein is present within fault (shear?) zones mineralized intervals can attain widths up to 3.3 m. The best drill intersection at Golan Burn was 3.3 m @ 5.9 g/t Au (internal report Celtic Gold plc., 1987).”

Approximately 3 km southeast of Curraghinalt, a zone of mineralization has been identified in the floor of the Alwories Quarry. The zone is up to 1 m wide and grades are reported at between 6 g/t Au and 32 g/t Au. Alwories Quarry is located within DG1.

Also within DG1 are the Glenlark and Coneyglen prospects, both of which host stratabound pyrite with zinc, lead and gold.

16.0 MINERAL PROCESSING AND METALLURGICAL TESTING

16.1 METALLURGICAL TEST RESULTS

Tully (2005) reports on metallurgical studies undertaken in the late 1980s and in 1999. The following description from Tully (2005) is provided for information purposes only.

“During the middle to late 1980’s a number of metallurgical studies were undertaken by Lakefield Research on the Curraghinalt mineralization. Gravity concentration recovered variable amounts of gold, ranging from about 15% to over 70% in various tests. Some of the gold in gravity concentrates was coarse and thus might not be suitable for flotation (or to a lesser extent for cyanidation). However, the gravity tails in all cases contained sufficient gold to necessitate further treatment. The results indicated that a gravity circuit would be advisable, especially if the principal recovery method were flotation.

Direct cyanidation of whole ores has also been tested in the past. Limited test-work on a number of samples suggests that overall recoveries in the 90 to 97% range, might be possible. The presence of abundant sulphides, especially chalcopyrite, might make this more expensive. Present indications are that cyanide consumption might be as much as 3.5 kg per tonne of feed.

Similarly flotation test work has shown that it is possible to produce good grade concentrates and achieve high recoveries. A potential drawback to this method comes from the fact that where the feed material has a high sulphide content, the concentration ratio would not be particularly attractive. The preliminary test work suggests that some of the concentrates would contain elevated concentrations of a number of deleterious elements such as mercury, arsenic, antimony, bismuth, and possibly others. The concentration of these elements would probably not result in unsaleable concentrates, but there might be penalties assessed by a smelter.

During 1999, six vein samples were collected from the underground workings and forwarded to International Metallurgical and Environmental Inc. (“IME”) for treatment. The samples were collected from the T17 Vein and No. 1 Vein. The six vein samples were independently ground to minus 10-mesh, and a one-half split of each was stored in a sealed, nitrogen-purged bag and frozen. The remaining halves were segregated into high-sulphide (T17 Vein) and low-sulphide (No. 1 Vein) groups, each containing three samples. These were then combined into composites. The portion of each composite not required for immediate gravity and flotation testing was stored, as reference splits.

Eleven separate tests were carried out, six on the low sulphide composite and five on the high. In all cases, a Knelson Concentrator gravity concentration step was followed by bulk flotation. In several of the tests, the bulk rougher concentrate was subjected to a cleaning stage. The gravity concentrates were not cleaned, in order to have enough material for analysis. All products, including tails, were analyzed for gold, silver, iron and total sulfur, and in several cases for copper. Selected samples of concentrates and tails from both composites were forwarded to Chemex for detailed analyses for various trace elements.

The results of the above work by IME demonstrated that both mineral composites (high and low sulphide content) were amenable to the unit processes of gravity concentration and flotation, and that the test results were reproducible.

Approximately 50% of the gold contained in both samples was recoverable using gravity concentration. The gravity concentrate tailings were subjected to flotation to achieve gold recoveries approximating 48% of the metals contained in the process feed. Thus the total recovery of gold in the feed exceeded 97%.

Silver recoveries approximated 30% in the gravity circuit. However, high recoveries of silver in the flotation circuit resulted in overall silver recoveries approximating 90% and 96% from the low and high sulphide composites respectively.

Saleable concentrates from both composites were produced. The only element of concern in the concentrate that could attract penalties was antimony. The amount of antimony in the low sulphide gravity concentrate was 0.116%, and was 0.362% in the flotation concentrate. The amount of antimony in the high sulphide test concentrate was 0.137% in the gravity concentrate, and 0.348% in the flotation concentrate. These concentrations are not considered to constitute a serious problem, but could result in penalties.

The low sulphide mineralization yields favourable concentration ratios that will minimize freight and treatment charges. Gravity concentrates could be further cleaned and smelted on site, or co-mingled with the flotation concentrate.

The combined gravity and flotation concentrates would grade 150 g/t Au and 80 g/t Ag, which is an acceptable grade for shipping. The grade of the flotation concentrate could be possibly improved, with little loss in precious metal recoveries, by including pyrite depression in the flotation circuit. Further test work is required to confirm this.”

A report was prepared by M. J. Donoghue in November, 2003, on behalf of Tournigan. This report provides a more detailed review of the metallurgical testwork described above by Tully.

17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES

17.1 MICON MINERAL RESOURCE ESTIMATE

Micon has prepared an estimate of mineral resources for the Curraghinalt deposit using geological information and assay data from 269 drill holes. This section of the report provides the methodology used for estimation of the gold mineral resource.

Primary, or raw, assay data were composited for gold and were analyzed to determine the basic statistical and geostatistical characteristics. This information has been used in several modelling algorithms, which have been compared and checked for validity. A total of 159 specific gravity measurements were utilized.

17.2 GEOLOGICAL MODEL

Several mineralized zones have been identified at Curraghinalt and these have been drilled to different degrees. The present resource estimate encompasses all the mineralized zones, which are comprised of 11 major zones, four secondary zones and 17 veinlets which bifurcate out of the major zones.

For the purpose of resource definition and modelling, each of the identifiable veins was designated with a code. These codes were different from previously used codes by Tully for the 2005 resource estimate. The additional veins identified since Tully’s mineral resource estimate are the result of further drilling and re-interpretation of the data. A general correlation of the previous and present codes is shown in Table 17.1.

Table 17.1 Previous and Present Codes Used for Mineralized Zones

Previous Present Name Code Sheep Dip 20 Mullen 30 T17 H/W 40 T17C 50 T11 55 No. 1 60 106-16 70 ABB D & G

The details of each mineralized zone along with the codes used in the mineral resource model are given in Table 17.2.

Table 17.2 Mineralized Zones and Codes

Primary Secondary Small Veinlets associated with Veins Vein Primary Veins 20 30 35 302, 302E 40 45 403, 451E, 451W 50, 50E 55 552 60 61,62, 601,604,605,606,607 70 75 701,703,708, 752 80 90 D G

The hanging wall and footwall contacts of each of the zones were calculated from the identified zone intersection from each drill hole. Two dimensional (2D) surfaces were then created for the hanging wall and footwall of each zone, with an additional extension 30 m to 40 m beyond the last contact point derived from the drill hole intersection. A vertical section derived from the hanging wall and footwall wireframes is shown in Figure 17.1.

The disposition of the different zones is illustrated schematically in Figure 17.2.

Figure 17.1 Typical Geological Section for the Curraghinalt Area (Section Orientation is North-South Looking West at X = 257437.5 m)

Vertical and horizontal scale shown by grid axes in metres.

Figure 17.2 Schematic 3D Disposition of Different Mineralized Zones for the Curraghinalt Area (View from Northeast Underneath)

Scale shown by marked Line = 876.75 m.

17.2.1 Basic Statistics

Basic statistics were calculated for gold for each of the individual zones with statistics calculated for the raw, capped and composited samples. The results are presented in Tables 17.3 through 17.8. The tables show classical statistical parameters (i.e., minimum, maximum, mean and standard deviation) for assays, composites and block model grades. Statistics on linear metal accumulation are similarly given in Tables 17.6 and 17.8. Both composited samples and estimated blocks are shown in the tables. Linear metal accumulation was calculated for each intersection by multiplying the total length of the samples by grade.

Table 17.3 Classical Statistics for the Mineralized Zones for Raw Assays for Gold (g/t Au)

Zone No. of Samples Minimum Maximum Mean Standard Deviation 20 35 0.01 109.00 17.53 28.20 30 54 0.01 109.44 10.04 17.29 35 8 0.01 30.70 16.73 12.86 302 10 0.02 28.60 6.55 10.21 302E 12 0.30 64.70 13.26 19.85 40 186 0.00 287.98 25.09 48.26 45 31 0.01 37.28 7.35 11.05 403 37 0.00 299.90 22.18 59.08 451E 10 0.02 16.96 4.89 6.54 451W 15 0.14 41.53 8.09 13.72 50 37 0.06 110.40 16.43 22.31 50E 45 0.01 45.93 7.07 11.74 55 107 0.00 138.20 13.55 24.75 552 17 0.02 25.73 5.08 8.16 60 200 0.00 227.60 18.83 32.31 61 22 0.01 90.20 13.51 20.40 62 19 0.61 141.25 30.24 44.86 601 16 0.03 59.75 15.38 17.28 604 39 0.00 115.00 10.47 20.11 605 8 0.11 27.80 9.01 9.73 606 13 1.17 24.00 9.47 9.25 607 28 0.01 80.50 12.42 22.65 70 222 0.01 221.70 14.80 24.85 75 60 0.01 56.53 11.00 15.61 701 42 0.01 133.21 13.61 28.62 703 17 0.01 53.76 11.36 15.28 708 13 0.00 35.25 12.06 9.88 752 19 0.00 14.79 5.21 5.90 80 12 0.03 104.32 17.59 29.14 90 25 0.01 109.44 13.95 25.00 D 50 0.00 133.75 20.75 27.82 G 28 0.00 64.25 25.99 20.48

Table 17.4 Classical Statistics for the Mineralized Zones for Capped Assays for Gold (g/t Au)

Zone No. of Samples Minimum Maximum Mean Standard Deviation 20 35 0.01 40.00 11.65 15.13 30 54 0.01 44.00 8.08 10.91 35 8 0.01 30.70 16.73 12.86 302 10 0.02 28.60 6.55 10.21 302E 12 0.30 44.00 11.49 15.71 40 186 0.00 110.00 20.26 32.23 45 31 0.01 28.00 5.70 9.27 403 37 0.00 110.00 12.90 30.57 451E 10 0.02 16.96 4.89 6.54 451W 15 0.01 41.53 6.47 12.69 50 37 0.06 45.00 14.06 15.08 50E 45 0.01 45.00 6.10 11.12 55 107 0.00 72.00 11.46 19.48 552 17 0.01 25.73 4.78 8.01 60 200 0.00 110.00 16.84 26.42 61 22 0.01 90.20 13.51 20.40 62 19 0.01 110.00 24.60 37.62 601 16 0.03 59.75 15.38 17.28 604 39 0.00 110.00 10.34 19.45 605 8 0.01 27.80 6.76 9.29 606 13 0.01 24.00 7.28 9.04 607 28 0.01 80.50 11.53 22.06 70 222 0.01 82.00 13.25 18.94 75 60 0.01 45.00 10.08 14.42 701 42 0.01 82.00 9.81 19.48 703 17 0.01 53.76 11.36 15.28 708 13 0.00 35.25 11.13 10.02 752 19 0.00 14.79 4.66 5.80 80 12 0.03 40.00 12.23 15.35 90 25 0.01 40.00 10.34 14.62 D 50 0.00 75.00 17.85 20.45 G 28 0.00 64.25 22.28 21.03

Table 17.5 Classical Statistics for the Mineralized Zones for Composited Assays for Gold (g/t Au)

Zone No. of Samples Minimum Maximum Mean Standard Deviation 20 12 0.01 32.50 11.80 10.84 30 18 0.26 29.97 9.37 8.20 35 4 6.74 30.70 18.17 11.15 302 5 0.74 16.70 5.80 5.76 302E 4 2.52 15.83 9.00 4.86 40 48 0.01 95.00 22.61 23.97 45 11 0.01 14.08 4.32 4.03 403 18 0.01 110.00 12.18 26.86 451E 4 0.21 14.24 5.65 5.28 451W 8 0.01 27.00 5.01 9.21 50 18 0.54 45.00 14.30 9.91 50E 15 0.01 24.84 6.18 6.30 55 42 0.01 72.00 11.91 17.49 552 5 2.12 8.06 5.04 2.01 60 72 0.01 110.00 15.84 19.27 61 10 0.94 90.20 22.53 25.55 62 13 1.41 110.00 25.23 36.48 601 11 2.35 59.75 18.07 15.30 604 16 0.12 110.00 13.67 25.83 605 6 0.01 27.80 8.35 9.97 606 9 0.01 24.00 9.87 9.78 607 10 0.01 38.25 9.36 11.96 70 74 0.01 82.00 16.64 18.24 75 19 0.01 28.93 8.77 7.83 701 18 0.01 82.00 9.54 19.98 703 6 0.62 12.36 6.56 4.46 708 8 0.01 17.50 8.68 4.93 752 6 0.01 11.40 4.81 4.05 80 5 4.32 32.35 12.09 10.29 90 5 2.16 40.00 12.97 14.11 D 23 0.01 53.20 15.18 12.22 G 17 0.15 64.25 22.19 18.62

Table 17.6 Classical Statistics for the Mineralized Zones for Composited Assays for Linear Metal Accumulation (g/t Au)

Zone No. of Samples Minimum Maximum Mean Standard Deviation 20 12 0.01 21.39 8.75 7.32 30 18 0.47 17.18 4.90 4.65 35 4 2.15 10.87 5.55 3.23 302 5 0.44 12.86 3.67 4.73 302E 4 1.07 13.78 5.53 5.16 40 48 0.03 157.70 30.55 37.65 45 11 0.06 6.85 2.68 2.41 403 18 0.00 110.00 13.38 29.09 451E 4 0.08 3.94 2.13 1.51 451W 8 0.05 20.25 3.91 6.89 50 18 0.91 36.79 8.05 9.39 50E 15 0.06 17.39 5.27 5.35 55 15 0.06 17.39 5.27 5.35 552 5 0.31 8.06 2.81 2.77 60 72 0.01 79.35 12.69 16.67 61 10 0.80 56.83 11.14 16.07 62 13 0.14 16.50 5.97 5.79 601 11 0.16 20.32 6.25 6.81 604 16 0.13 27.51 5.81 7.63 605 6 0.08 4.45 2.03 1.84 606 9 0.01 9.84 2.54 3.04 607 10 0.11 43.11 8.51 12.59 70 74 0.02 111.28 12.59 16.12 75 19 0.02 29.80 8.57 9.27 701 18 0.00 87.74 8.86 20.88 703 6 0.06 34.97 9.03 12.22 708 8 0.03 17.31 5.74 5.22 752 6 0.04 6.82 3.00 2.50 80 5 0.56 17.47 7.27 6.39 90 5 1.67 32.03 10.29 11.03 D 23 0.10 39.66 11.85 11.69 G 17 0.05 29.51 10.22 8.21

Table 17.7 Classical Statistics for the Mineralized Zones for Estimated Blocks for Gold (g/t Au)

Zone No. of Samples Minimum Maximum Mean Standard Deviation 20 686893 0.01 32.50 9.56 5.05 30 5288675 0.26 29.97 11.34 6.80 35 226559 6.74 30.70 17.06 10.13 302 322253 0.74 16.70 5.57 3.96 302E 281286 2.52 15.83 9.13 4.34 40 3656578 0.01 95.00 14.80 13.26 45 515469 0.01 14.08 4.39 3.08 403 251764 1.48 6.32 4.33 1.99 451E 227364 0.21 14.24 5.24 4.43 451W 193908 0.01 27.00 7.47 9.82 50 335307 0.54 45.00 14.33 7.87 50E 421933 0.01 24.84 5.24 3.95 55 2658714 0.01 72.00 9.69 12.86 552 224313 2.12 8.06 4.74 1.83 60 7953735 0.01 110.00 17.50 17.69 61 291575 0.94 90.20 23.23 23.64 62 377111 1.41 110.00 22.55 32.03 601 437315 2.35 59.75 17.20 10.67 604 520886 0.12 110.00 12.78 22.20 605 529935 0.01 27.80 5.08 5.04 606 703208 0.01 24.00 7.94 7.72 607 419206 0.01 38.25 8.77 10.48 70 9150592 0.01 82.00 16.83 14.42 75 1136198 0.01 28.93 8.85 6.45 701 871775 0.01 82.00 7.26 13.90 703 220248 0.62 12.36 6.67 3.31 708 423156 0.01 17.50 8.30 4.48 752 139762 0.01 11.40 5.34 3.18 80 1238324 4.32 32.35 10.15 8.29 90 335380 2.16 40.00 12.10 12.35 D 505031 0.01 53.20 14.56 10.08 G 486842 0.15 64.25 19.59 16.14

Table 17.8 Classical Statistics for the Mineralized Zones for Estimated Blocks for Linear Metal Accumulation (g/t Au)

Zone No. of Samples Minimum Maximum Mean Standard Deviation 20 686893 0.01 21.39 10.22 4.42 30 5288675 0.18 17.18 4.78 2.99 35 226559 2.15 10.87 5.96 2.80 302 322253 0.44 12.86 3.36 3.33 302E 281286 1.07 13.78 6.29 4.13 40 3656578 0.03 157.70 17.77 18.07 45 515469 0.06 6.85 2.98 1.92 403 251764 0.23 1.60 0.99 0.22 451E 227364 0.08 3.94 2.09 1.32 451W 193908 0.05 20.25 5.80 7.27 50 335307 0.91 36.79 8.30 7.45 50E 421933 0.06 17.39 4.17 3.79 55 2658714 0.00 23.05 4.43 4.58 552 224313 0.31 8.06 2.89 2.22 60 7953735 0.01 79.35 15.50 17.10 61 291575 0.80 56.83 13.39 15.60 62 377111 0.14 16.50 5.72 5.08 601 437315 0.16 20.32 7.36 6.52 604 520886 0.13 27.51 5.39 6.38 605 529935 0.08 4.45 1.66 1.41 606 703208 0.01 9.84 2.17 2.46 607 419206 0.11 43.11 8.25 9.85 70 9150592 0.02 111.28 13.09 12.40 75 1136198 0.02 29.80 7.82 7.13 701 871775 0.00 87.74 7.00 14.42 703 220248 0.06 34.97 7.51 7.89 708 423156 0.03 17.31 5.75 5.15 752 139762 0.04 6.82 3.62 1.93 80 1238324 0.56 17.47 5.23 5.55 90 335380 1.67 32.03 10.81 10.01 D 505031 0.10 39.66 10.69 10.34 G 486842 0.05 29.51 9.37 7.63

17.2.2 Raw Assay Intervals

Samples were selected within the mineralized wireframe for all the zones. The statistical analysis and the resource estimation were carried out using only these samples.

A study on capping of high grade gold assays was carried out. There are not enough samples for each sub-zone (veinlets) to apply capping individually. All the samples from each veinlet were included with the samples from the major zones in order to assess capping for that particular zone.

While a few of the major zones do not have enough samples to create a probability plot, these plots were created for almost all of the major zones and a few of the sub-zones. The

inflection point in the probability plot indicates the break in continuity of the distribution for each zone. Capping was applied since these inflections indicate the beginning of the outlier population for the respective zones. The details of grade capping for each zone are given in Table 17.9. The percentile at which capping has been applied, along with number of samples affected by capping, are shown in Table 17.10. The probability plots are shown in Figures 17.3 through 17.9.

Table 17.9 Gold Capping for Different Zones

Vein Capping Vein Capping Vein Capping Vein Capping Code (g/t Au) Code (g/t Au) Code (g/t Au) Code (g/t Au) 20 40 451E 110 62 110 701 82 30 44 451W 110 601 110 703 82 35 44 50 45 604 110 708 82 302 44 50E 45 605 110 752 82 302E 44 55 72 606 110 80 40 40 110 552 45 607 110 90 40 45 28 60 110 70 82 D 75 403 110 61 110 75 45 G -

Table 17.10 Number of Samples Affected by Capping and the Percentile at Which Capping is Applied

Total No. of Percentile Total No. of Percentile Vein number Samples at Which Vein number Samples at Which Code of Affected By Capping is Code of Affected By Capping is Samples Capping Applied Samples Capping Applied 20 35 3 91 62 19 3 84 30 54 1 98 601 16 0 100 35 8 0 100 604 39 0 100 302 10 0 100 605 8 0 100 302E 12 2 83 606 13 0 100 40 186 8 96 607 28 0 100 45 31 2 94 70 222 3 99 403 37 2 95 75 60 2 97 451E 10 0 100 701 42 1 98 451W 15 0 100 703 17 0 100 50 37 3 92 708 13 0 100 50E 45 1 98 752 19 0 100 55 107 5 95 80 12 1 92 552 17 0 100 90 25 2 92 60 200 6 97 D 50 2 96 61 22 0 100 G 28 0 100

Figure 17.3 Probability Plot for Zone 30 of Curraghinalt Area

10000 Capping 44 g/t 1000

100 )

1 Grade (g/t Au 0.1

0.01

0.001 -4 -3 -2 -1 0 1 2 3 4 Cumulative Normal Distribution Function

Figure 17.4 Probability Plot for Zone 40 of Curraghinalt Area

10000 Capping 110 g/t 1000

100 ) 10

0.1 Grade (g/tAu 0.01

0.001

0.0001 -4 -3 -2 -1 0 1 2 3 4 Cumulative Normal Distribution Function

Figure 17.5 Probability Plot for Zone 45 of Curraghinalt Area

10000 Capping 28 g/t 1000

100 ) 10

0.1 Grade (g/t Au

0.01

0.001

0.0001 -4 -3 -2 -1 0 1 2 3 4 Cumulative Normal Distribution Function

Figure 17.6 Probability Plot for Zone 50 of Curraghinalt Area

10000 Capping 72 g/t Au 1000

100 ) 10

0.1 Grade (g/t Au

0.01

0.001

0.0001 -4 -3 -2 -1 0 1 2 3 4 Cumulative Normal Distribution Function

Figure 17.7 Probability Plot for Zone 60 of Curraghinalt Area

10000 Capping 110 g/t Au

1000

) 100

Grade (g/t Au 1

0.1

0.01 -4 -3 -2 -1 0 1 2 3 4 Cumulative Normal Distribution Function

Figure 17.8 Probability Plot for Zone 70 of Curraghinalt Area

10000 Capping 82 g/t Au 1000

100 )

1 Grade (Au g/t 0.1

0.01

0.001 -4 -3 -2 -1 0 1 2 3 4 Cumulative Normal Distribution Function

Figure 17.9 Probability Plot for Zone 75 of Curraghinalt Area

10000 Capping 45 g/t Au 1000

100 ) 10

0.1 Grade (AuGrade g/t 0.01

0.001

0.0001 -4 -3 -2 -1 0 1 2 3 4 Cumulative Normal Distribution Function

17.2.3 Compositing

Compositing is the first step in mineral resource estimation. The intersection defined by each drill hole for each zone represents the thickness of the quartz vein for that zone. In places, the width of the quartz vein is as low as 10 cm. It is not possible to carry out uniform length compositing with a length of 10 cm, since it would generate a huge number of artificial samples which is not supported by the theory of compositing. A larger composite length on the other hand would dilute the grade of the vein. Under such circumstances, it is better to group all the samples from a single drill intersection through a vein into one composite. The problem of variable composite length may be overcome by estimating linear metal accumulation rather than grade for the purpose of interpolation.

Compositing was carried out based on the above method. Statistical analysis of variable length compositing was carried out. A comparison was made between the capped samples and composited samples for each zone, as shown in Figure 17.10. Linear metal accumulation was calculated for each intersection by multiplying the total length of the samples by the grade. The classical statistics for linear metal accumulation are given in Table 17.8, above.

Figure 17.10 Scatter Plot Comparing Capped Mean and Composited Mean for Each Zone

100.00 u

10.00 Composited Sample Mean for Each A Mean for Zone Sample Composited (g/t 1.00 1.00 10.00 100.00 Capped Sample Mean for Each Zone (g/t Au)

17.3 GRADE INTERPOLATION METHOD

17.3.1 Estimation Parameters and Search Distances

The density of drilling in the principal zones of mineralization is generally 30 m by 30 m. This drill density, together with good understanding of the geology and mineralization, provides a reasonable level of confidence in the resource estimate. The method of compositing resulted in a single sample point per intersection. This results in a two- dimensional estimation protocol. The method of compositing has resulted in reduction of the nugget effect to a minimum. This is supported by the low standard deviation for each zone (see Tables 17.7 and 17.8, above). A very low nugget effect prompted the selection of the inverse distance method of estimation. The power was raised to 5 so that the variation of grade remains local. See Table 17.11. The analysis of classical statistics and compositing has dictated the selection of the estimation parameters. The orientation of the search ellipse for all the zones along with the estimation parameters are given in Tables 17.12 and 17.13.

Table 17.11 Summary of Search Volume Reference Number, Estimation Method and Zone

Search Volume Estimation Search Volume Estimation Zone Power Zone Power Reference No. Method Reference No. Method 20 1 Inverse Distance 5 62 17 Inverse Distance 5 30 2 Inverse Distance 5 601 18 Inverse Distance 5 35 3 Inverse Distance 5 604 19 Inverse Distance 5 302E 4 Inverse Distance 5 605 20 Inverse Distance 5 302 5 Inverse Distance 5 606 21 Inverse Distance 5 40 6 Inverse Distance 5 607 22 Inverse Distance 5 45 7 Inverse Distance 5 70 23 Inverse Distance 5 403 8 Inverse Distance 5 75 24 Inverse Distance 5 451E 9 Inverse Distance 5 701 25 Inverse Distance 5 451W 10 Inverse Distance 5 703 26 Inverse Distance 5 50 11 Inverse Distance 5 708 27 Inverse Distance 5 50E 12 Inverse Distance 5 752 28 Inverse Distance 5 55 13 Inverse Distance 5 80 29 Inverse Distance 5 552 14 Inverse Distance 5 90 30 Inverse Distance 5 60 15 Inverse Distance 5 G 31 Inverse Distance 5 61 16 Inverse Distance 5 D 32 Inverse Distance 5

Table 17.12 Summary of Search Volume Reference Number, Direction and Angle of Rotation

Search Search Search Search Angle of Angle of Angle of Volume Along Along Along Axis of Axis of Axis of Rotation Rotation Rotation Reference X - Z - Y - Rotation Rotation Rotation (o) (o) (o) No. Direction Direction Direction 1 30 30 50 30 Z 50 X 0 Y 2 30 30 50 20 Z 55 X 0 Y 3 30 30 50 12 Z 65 X 0 Y 4 30 30 50 27 Z 65 X 0 Y 5 30 30 50 22 Z 65 X 0 Y 6 30 30 50 15 Z 65 X 0 Y 7 30 30 50 -5 Z 45 X 0 Y 8 30 30 50 12 Z 65 X 0 Y 9 30 30 50 20 Z 55 X 0 Y 10 30 30 50 10 Z 50 X 0 Y 11 30 30 50 10 Z 55 X 0 Y 12 30 30 50 22 Z 45 X 0 Y 13 30 30 50 20 Z 50 X 0 Y 14 30 30 50 10 Z 45 X 0 Y 15 30 30 50 17 Z 55 X 0 Y 16 30 30 50 8 Z 55 X 0 Y 17 30 30 50 15 Z 55 X 0 Y 18 30 30 50 20 Z 45 X 0 Y 19 30 30 50 12 Z 52 X 0 Y 20 30 30 50 13 Z 60 X 0 Y 21 30 30 50 25 Z 60 X 0 Y 22 30 30 50 15 Z 55 X 0 Y 23 30 30 50 15 Z 50 X 0 Y 24 30 30 50 15 Z 50 X 0 Y 25 30 30 50 5 Z 50 X 0 Y 26 30 30 50 5 Z 45 X 0 Y 27 30 30 50 15 Z 55 X 0 Y 28 30 30 50 -5 Z 60 X 0 Y 29 30 30 50 5 Z 45 X 0 Y 30 30 30 50 -5 Z 60 X 0 Y 31 30 30 50 20 Z 70 X 0 Y 32 30 30 50 20 Z 70 X 0 Y

Table 17.13 Summary of Search Parameters

Parameter Value Minimum No. of Samples 3 Maximum No. of Samples 4 Search Enlargement Factor 4 Minimum No. of Samples 2 Maximum No. of Samples 4 Search Enlargement Factor 8 Minimum No. of Samples 1 Maximum No. of Samples 4

100

17.4 BLOCK MODEL

The block model constructed for the Curraghinalt resource estimate utilized rectangular blocks measuring 10 m (X) by 2,000 m (Y) by 5 m (Z) in height. Although the dimension in the Y-direction is unusually long, this was selected with the understanding of the nature of the transverse sections of the mineralized zones. In order to better conform to the mineralization contacts, Datamine software uses a system of sub-blocking. The sub-blocking method used in Datamine would result in a single block in the Y-direction conforming to the width of the vein and is in line with the method of compositing. Blocks were permitted to split in the X and Z directions. This procedure minimizes the volume variance between the wireframe model and the block model. This block size was the most appropriate considering the morphology of the mineralization and the distribution of sample data. The parameters that describe the block model are summarized in Table 17.14.

Table 17.14 Block Model Parameters

Block Dimension Direction Origin1 No. of Blocks No. of Sub-Blocks (m) X 256250 E 10 200 40 Y 385770 N 2,000 1 1 Z -550 5 200 20 1 Origin of X and Y axes based on Irish Transverse Mercator Grid; origin of Z axis is at -290 m, is altitude from mean sea level.

Block model grade interpolation was performed for gold using inverse distance to the power of 5 in different zones as detailed in Table 17.11, above. Concentric search ellipses were used to avoid smearing of grade and for preservation of local variation. Estimations were carried out for both gold and linear metal accumulation. The grades were recalculated from linear metal accumulation by dividing it by the length of individual blocks in the Y-direction. This recalculated grade was used for resource reporting and was done so in order to carry through the procedure adopted during compositing.

17.5 BLOCK MODEL VALIDATION

Validation of the block model included visual inspection, comparison of the mean between the composited and estimated data and comparison of individual block grades with the de- clustered sample grades. The cross-section, plan view (on 170 m RL, the 170 m level, 60 m below surface) and a three-dimensional view of the block model are shown in Figures 17.11 through 17.13.

The means for all the zones for composited and estimated sample for gold and linear metal accumulation are shown as scatter plots in Figures 17.14 and 17.15. These clearly show that the composited and the estimated means compare well for all the zones.

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Figure 17.11 North-south Cross-section Showing Block Model Grades for Mineralized Zones for Curraghinalt Area (Section Looking West at X = 256987.75 m)

Vertical and horizontal scale shown by grid axes in metres.

Figure 17.12 Plan View at 170 m RL of the Block Model Categorized into Different Grades for Curraghinalt Area

Vertical and horizontal scale shown by grid axes in metres.

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Figure 17.13 Schematic 3D Rendering of Block Model Categorized into Different Grades for Curraghinalt Area (View from Northeast Underneath)

Scale shown by marked Line = 876.75 m.

Figure 17.14 Comparison of Composited to Estimated Mean of Gold Grade for Each Zone

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Figure 17.15 Comparison of Composited to Estimated Mean of Linear Metal Accumulation for Each Zone

The block model grade interpolation protocol was investigated by inspecting plots of block model grades versus mean borehole sample composite grades that occur within each block. Mean borehole sample composite grades were calculated for each block using the de- clustering technique in which the weighted average grade of composites that fall within a block is calculated. This value is compared with the grade interpolated for the block. A successful grade interpolation protocol will result in block grade estimates that demonstrate a minimum amount of bias.

A plot comparing composite grades and block model grades for all the zones is presented in Figure 17.16. It is apparent in the plots that there is no significant bias. The de-clustering analysis demonstrates that the mineral resource model provides a reasonable estimate of Curraghinalt mineral resources. Comparison plots for drill hole data to the resource block model grades are presented in Appendix 2.

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Figure 17.16 Comparison of De-clustered Drill Hole Data with Resource Model Block Grade for Curraghinalt Area

1000

100

0.1 Block Model Data (g/t Au) (g/t Data Model Block

0.01

0.001 0.001 0.01 0.1 1 10 100 1000 De-Clustered Drill hole Data (g/t Au)

17.6 MINERAL RESOURCE CLASSIFICATION

Mineral resources were estimated following the CIM guidelines. The following definitions were adopted for the classification of mineral resources. There are no measured resources within the estimate.

• Indicated mineral resources are defined as those portions of the deposit estimated with a drill spacing generally defined by 30 m by 30 m and high level of confidence on geological continuity of mineralization. The limit of indicated resource was considered to be 30 m from the last drill hole with the above drill spacing.

• Inferred mineral resources are defined as those portions of the deposit for which grade is interpolated utilizing a wider drill spacing, at places with 100-m radius, or fewer intersections but with a high level of confidence on the geological continuity of the mineralization. The limit of the inferred resource has been considered to be 30 m from the last drill hole on the periphery.

Most of the major zones have been classified as indicated and inferred resources. Zones 80, 90, D and G have been classed as inferred since there is insufficient drilling on each for them to be included in the indicated category. Sub-zones 55 and 75 have been classified as indicated and inferred resources. All the other sub-zones have been classified as inferred resources. All the veinlets have been classified as inferred except Zone 403 where, at the upper levels, there is sufficient drilling to classify some portion as an indicated resource.

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A vertical longitudinal projection of Vein (Zone) 70 is given in Figure 17.17 to demonstrate the method of resource classification.

Figure 17.17 Vertical Longitudinal Projection of Vein 70 (Looking North-East)

Circular dots indicate the drill intersection. The red line indicates the boundary of Indicated resource and the green line indicates the boundary of Inferred Resource. Vertical and horizontal scale shown by grid axes in metres.

Figure 17.18 shows a cross-section for the resource model, colour-coded on the category of resource.

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Figure 17.18 North-south Cross-Section Looking Showing Resource Classifications for Curraghinalt Area (Section Looking West at X = 256987.75 m)

Green - Indicated Resource, Yellow - Inferred Resource, Vertical and horizontal scale shown by grid axes in metres.

A plan view (170 m RL) is also presented in Figure 17.19, with classification of the mineral resource. A three-dimensional view of the model in presented in Figure 17.20.

Figure 17.19 Plan View at 170 m RL Showing Resource Classifications for the Curraghinalt Area

Green - Indicated Resource, Yellow - Inferred Resource, Vertical and horizontal scale shown by grid axes in metres.

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Figure 17.20 Schematic 3D View of the Block Model for the Curraghinalt Area (View Northeast Underneath)

Green - Indicated Resource, Yellow - Inferred Resource Scale shown by marked line = 876.75 m.

The grade-tonnage distribution of the Curraghinalt block model is presented in Figures 17.21 and 17.22. It is apparent that the deposit maintains a significant profile of indicated mineral resources at higher cut-off grades. The estimated mineral resources at different cut-off grades and vein thickness are shown in Tables 17.17 and 17.18. It is evident from the grade tonnage curves and the tables that there is little resource tied up with blocks of vein thickness less than 0.1 m.

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Figure 17.21 Grade-Tonnage Distribution of the Indicated Mineral Resource at Different Thickness Cut-off

Figure 17.22 Grade-Tonnage Distribution of the Inferred Mineral Resource at Different Thickness Cut-off

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Table 17.15 Mineral Resource Estimate at Different Grade and Thickness Cut-offs

Original Indicated Resource Inferred Resource Thickness Cut-off Metal Metal Cut-off Million Grade Million Grade (g/t Au) Million Million (m) Tonnes (g/t) Tonnes Tonnes (g/t) Tonnes Oz Oz 0.0 1.93 7.68 0.48 14.83 5.17 8.10 1.35 41.89 2.0 1.50 9.62 0.46 14.43 3.79 10.72 1.31 40.66 4.0 1.10 12.03 0.43 13.25 2.92 13.03 1.22 38.03 5.0 0.95 13.24 0.40 12.57 2.46 14.64 1.16 35.96 5.5 0.88 13.83 0.39 12.23 2.19 15.78 1.11 34.56 0.0 6.0 0.81 14.55 0.38 11.82 2.01 16.69 1.08 33.52 6.5 0.74 15.33 0.37 11.38 1.83 17.68 1.04 32.44 7.0 0.69 15.96 0.35 11.04 1.72 18.44 1.02 31.63 10.0 0.43 20.45 0.29 8.89 1.21 22.67 0.88 27.32 12.0 0.33 23.36 0.25 7.78 0.95 25.86 0.79 24.50 0.0 1.93 7.68 0.48 14.83 5.15 8.13 1.35 41.85 2.0 1.50 9.62 0.46 14.43 3.78 10.74 1.31 40.63 4.0 1.10 12.03 0.43 13.25 2.92 13.04 1.22 38.02 5.0 0.95 13.24 0.40 12.57 2.46 14.64 1.16 35.95 0.1 5.5 0.88 13.83 0.39 12.23 2.19 15.79 1.11 34.55 6.0 0.81 14.55 0.38 11.82 2.01 16.69 1.08 33.51 6.5 0.74 15.33 0.37 11.38 1.83 17.68 1.04 32.43 7.0 0.69 15.96 0.35 11.04 1.72 18.44 1.02 31.63 10.0 0.43 20.45 0.29 8.89 1.21 22.67 0.88 27.31 12.0 0.33 23.36 0.25 7.78 0.95 25.86 0.79 24.50 0.0 1.25 7.81 0.31 9.72 2.27 7.13 0.52 16.20 2.0 0.98 9.69 0.31 9.49 1.71 9.21 0.51 15.74 4.0 0.75 11.75 0.28 8.78 1.32 11.06 0.47 14.56 5.0 0.64 12.96 0.27 8.30 1.07 12.56 0.43 13.47 5.5 0.60 13.51 0.26 8.08 0.98 13.27 0.42 12.97 1.0 6.0 0.56 14.10 0.25 7.83 0.89 14.01 0.40 12.46 6.5 0.51 14.73 0.24 7.58 0.81 14.75 0.39 11.98 7.0 0.48 15.37 0.24 7.32 0.75 15.42 0.37 11.56 10.0 0.27 20.60 0.18 5.61 0.45 20.09 0.29 9.02 12.0 0.20 23.86 0.16 4.86 0.33 23.29 0.25 7.74 0.0 1.05 7.38 0.25 7.76 1.76 6.47 0.37 11.40 2.0 0.82 9.19 0.24 7.56 1.29 8.57 0.35 11.04 4.0 0.63 11.10 0.22 6.95 1.00 10.14 0.33 10.18 5.0 0.53 12.25 0.21 6.54 0.80 11.58 0.30 9.28 5.5 0.50 12.75 0.20 6.35 0.72 12.25 0.29 8.88 1.2 6.0 0.46 13.31 0.20 6.14 0.66 12.89 0.27 8.50 6.5 0.43 13.90 0.19 5.92 0.60 13.51 0.26 8.15 7.0 0.39 14.48 0.18 5.70 0.56 14.09 0.25 7.83 10.0 0.21 19.54 0.13 4.20 0.31 18.45 0.19 5.76 12.0 0.16 22.77 0.11 3.56 0.22 21.64 0.15 4.74

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Table 17.16 Mineral Resource Estimate at Different 5.0 g/t Au Cut-off Grades With Different Vein Thickness

Indicated Resource Inferred Resource Original Metal Metal Thickness Million Grade Million Grade Million Million Cut-off (m) Tonnes (g/t) Tonnes Tonnes (g/t) Tonnes Oz Oz 0.0 0.95 13.24 0.40 12.57 2.46 14.64 1.16 35.96 0.1 0.95 13.24 0.40 12.57 2.46 14.64 1.16 35.95 1.0 0.64 12.96 0.27 8.30 1.07 12.56 0.43 13.47 1.2 0.53 12.25 0.21 6.54 0.80 11.58 0.30 9.28

17.7 MINERAL RESOURCE ESTIMATES

Micon has considered the technical and economic criteria used to estimate a reasonable gold cut-off grade for reporting of the mineral resources. Using these Micon has produced a preliminary estimate for a break-even cut-off grade for reporting mineralization at Curraghinalt considering all factors, including the accessibility and infrastructure. Due to the significant increases in gold prices since the Tournigan estimate Micon has chosen to use a cut-off grade of 5 g/t for the estimate presented herein. For this estimate a gold price of US$900 per ounce was assumed.

Previously, when reporting the model of the Curraghinalt deposit for Tournigan, Micon had tabulated only those blocks which had vein thicknesses greater than 1 m and whose grade was greater than 6 g/t Au. The 1 m minimum criteria was suggested by Tournigan and accepted by Micon as it was determined to be conservative.

After detailed review of blocks where the vein thickness was less than 1 m it became clear that some very-high-grade narrow veins were being eliminated from the resource based on the thickness criteria (previously applied independently of grade). It was decided that the impact on the resources when those blocks were diluted to a 1 m vein thickness should be examined. This review led Micon to reconsider the resource reporting criteria which are detailed below.

For the resource tabulation presented in this report Micon has recalculated the grades of those blocks which had vein thicknesses of less than 1 m, using zero grade for the remaining thickness of the vein, in order to have a minimum vein thickness of 1 m. For example, if the vein grade was 10 g/t with a thickness of 0.5 m, another 0.5 m with 0.0 g/t grade was added to complete the 1 m width. As a result, the grade of the block would be 5 g/t for a 1 m width. This will result in keeping the same contained ounces but will dilute the grade and tonnes.

A minimum of 0.10 m original vein thickness was considered for the re-estimation of resources presented here. Original vein thickness blocks of less than 0.10 m were eliminated from the resource tabulation. There were minor differences between a 0.00-m and 0.10-m minimum which disappear with rounding.

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The methods described above have resulted in a substantial increase in the reported mineral resources over the Tournigan report (Mukhopadhyay, 2007).

A 3-D image of vein 70, using a minimum vein thickness of 0.10 m and fully diluted cut-off grade of 5 g/t is shown in Figure 17.23 for better understanding.

Figure 17.23 3-D View of Vein 70 with a grade cut-off of 5 g/t Looking from South-East Underneath

- Scale is variable due to isometric image.

As discussed, based on the above re-estimation, it was concluded that 5 g/t Au is an appropriate cut-off for mineral resource reporting. The mineral resource estimate was updated with the surface topography (veins close to surface were wireframed and modeled beyond the surface). Based on a cut-off grade of 5 g/t Au, the indicated mineral resources at Curraghinalt total 0.95 million tonnes at an average grade of 13.24 g/t Au. The inferred mineral resources total 2.46 million tonnes at an average grade of 14.64 g/t Au. This is summarized in Table 17.19.

Table 17.17 Classified Mineral Resource Estimate at 5 g/t Gold Cut-off and 0.1 m Minimum Width

Indicated Resource Inferred Resource Au Metal Au Metal Million Grade Million Grade Million Million Tonnes (g/t) Tonnes Tonnes (g/t) Tonnes Oz Oz 0.95 13.24 0.40 12.57 2.46 14.64 1.16 35.95

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The stated mineral resources are not materially affected by any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant issues, unless stated in this report, to the best knowledge of the author. There are no known mining, metallurgical, infrastructure or other factors that materially affect this mineral resource estimate.

The mineral resource estimate by Dibya Kanti Mukhopadhyay, MAusIMM, is compliant with the current standards and definitions required under NI 43-101 and is, therefore, reportable as a mineral resource by Dalradian Resources. However, the reader should be cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability.

17.8 MINERAL RESERVES

As there has been no prefeasibility or feasibility study completed on the Curraghinalt deposit there are no reportable mineral reserves at this time.

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18.0 OTHER RELEVANT DATA AND INFORMATION

A report was prepared, as “an internal review note” by M. J. Donoghue on behalf of Tournigan, dated November, 2003. In addition to providing a review of previous metallurgical testwork (see Section 16, above), the report also provided a review of prior economic evaluation data. General economic and metal market conditions at the end of 2003 were significantly different to those pertaining in late 2007 or late 2009 - 2010.

Micon is not aware of any additional information or explanation necessary in order to make this Technical Report understandable and not misleading.

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19.0 INTERPRETATION AND CONCLUSIONS

Due to the amount of historical exploration work conducted by the earlier operators of the property, upon acquisition Tournigan moved directly to infill and deeper drilling of the Curraghinalt gold deposit and did not undertake any significant mapping, surface sampling programs or additional detailed geochemical surveys on the property.

The infill and exploration drill program at the Curraghinalt deposit allowed Tournigan in 2007 to report an indicated mineral resource (at a minimum width of 1 m and a cut-off grade of 6 g/t Au) of 0.57 million tonnes at an average grade of 13.95 g/t Au (250,000 ounces contained) and an inferred mineral resource of 0.64 million tonnes at an average grade of 17.15 g/t Au (350,000 ounces contained), Mukhopadhyay (2007).

The mineralization at the deposit represents typical mesothermal gold mineralization with several phases of mineralized fluids being injected through shear structures. The mineralization occurs in several parallel veins and sub-veins or veinlets which are open at depth. In 2007 Micon concluded that further exploration of the veins and veinlets should be conducted by Tournigan through continued drilling which will assist in further updating the mineral resource estimates over time.

Before halting exploration at the Curraghinalt deposit, Tournigan completed four deep holes under it which were not available to be used in the resource estimate completed at that time. In purchasing Tournigan’s Northern Ireland subsidiary, Dalradian Gold, Dalradian Resources has acquired a mid-stage gold deposit for which an updated mineral resource estimate was timely allowing the company to disclose the resource. Micon has adjusted the geological model to take into account these four holes and has updated the mineral resource estimate.

In order to conduct the present resource estimate, the mineralized area was again divided into different zones with statistical analysis carried out for each of the zones. The resource has been classified following the CIM standards and definitions as required under the guidelines of NI 43-101. The mineral resource has been reported at an economic cut-off grade of 5 g/t Au (in light of the significant changes in gold price since 2007) over a minimum thickness of 0.10 m diluted to 1.0 m at zero grade. The results of the 2009 estimate are presented in Table 19.1. This estimate is based exploration data available as of November 30, 2009.

Table 19.1 Classified Mineral Resource Estimate at 5 g/t Gold Cu-off and 0.1 m Minimum Width

Indicated Resource Inferred Resource Au Metal Au Metal Million Grade Million Grade Million Million Tonnes (g/t) Tonnes Tonnes (g/t) Tonnes Oz Oz 0.95 13.24 0.40 12.57 2.46 14.64 1.16 35.95

The stated mineral resources are not materially affected by any known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other relevant issues,

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unless stated in this report, to the best knowledge of the authors. There are no known mining, metallurgical, infrastructure or other factors that materially affect this mineral resource estimate.

The mineral resource estimate is compliant with the current CIM standards and definitions as required under NI 43-101 and is, therefore, reportable as a mineral resource by Dalradian Resources. However, the reader should be cautioned that mineral resources are not mineral reserves and do not have demonstrated economic viability.

There is potential for the conversion of mineral resources from the inferred and indicated categories to Indicated and Measured categories at the Curraghinalt gold deposit. Within the present resource estimate, only the major vein systems have mineral resources classified as Indicated. Relatively little infill drilling has been undertaken on the property and it is Micon’s opinion that there are many sub-veins which have good potential to be brought into the Indicated resource category.

The above mineral resource has been estimated only for the central part of the Curraghinalt deposit. There are sufficient indications, based on preliminary mapping and geochemical sampling, for exploration potential in either direction from the deposit and there is good potential that some of the veinlets identified in the present study may contribute to future resources. Regional geochemical and structural studies clearly indicate that there are parallel trends of mineralization in conformity with the Curraghinalt trend.

There is also potential to further increase the resource tonnage by stepping out from the presently identified mineralized zones and in the evaluation of the other known deposits within the surrounding area. Exploration conducted so far in the adjoining areas has provided positive results. The Curraghinalt deposit is located on the DG1 mineral licence but the potential for discovery of new, similar mineralization may extend as far as the DG3 and DG4 licences (see Figure 4.1)

In addition to the DG1, DG3 and DG4 licences, Dalradian Resources has also acquired the DG2 licence which lies on the south side of the Omagh Thrust Fault. Underlying this licence is a different package of rocks known as the Tyrone Volcanic Group (TVG). The TVG is an accreted island arc suite known to host gold mineralization in silicified rhyolite breccias and porphyry-style copper mineralization.

Available scientific literature also indicates that the TVG is the central piece of a larger island arc sequence which includes the Bathurst camp in Newfoundland and the Caledonides in Scandinavia. This sequence has been separated and moved apart by the opening of the Atlantic Ocean and related plate tectonic movements. Both of these regions are known to host volcanogenic massive sulphide (VMS) mineralization sometimes in large deposits. It has been postulated that the TVG is a potential host for a VMS deposit as well. Micon considers the Curraghinalt deposit area in the Dalradian metasediments and the TVG to be worthy of further exploration expenditure.

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20.0 RECOMMENDATIONS

In its previous technical report for Tournigan, Micon made the following recommendations for the Tyrone project which remain largely incomplete due to the cessation of the work program.

• Continue to conduct exploration at the Curraghinalt deposit.

• Initiate work on a preliminary economic assessment for the Curraghinalt deposit, including a program of metallurgical testwork.

• Conduct a regional-scale reconnaissance program in order to confirm the extent of the previously identified mineral occurrences.

• Complete a reconnaissance drill program to cover the entire Tyrone project area. This would assist in the definition of further target areas of immediate importance.

• Collect a comprehensive suite of specific gravity data at the Curraghinalt deposit in order to better define the relationships between the estimated tonnages of the mineralized material within the individual veins to grade and mineralogy.

• Conduct a program of metallurgical testwork on the Curraghinalt gold deposit that builds upon the results of historical testwork programs.

20.1 PROPOSED EXPLORATION PROGRAM AND BUDGET

After its review of the previous work completed and recommendations made, Dalradian Resources, with assistance from Aurum, has proposed a multifaceted exploration program for 2010. This work is intended to further explore and develop the Curraghinalt deposit and to explore the remaining ground held under licence to the extent required to keep the licences in good standing.

The exploration program has been divided into individual budgets for the exploration of each of the four licence areas as well as a separate budget for the exploration and definition of the Curraghinalt gold deposit, a project which is at a more advanced stage.

20.1.1 Curraghinalt Deposit Exploration

The proposed exploration program for the Curraghinalt deposit, on licence DG1, is concentrated on drilling. The goals of the drill program are better definition of the current resources and exploration to extend the known mineralized structures and find new, neighbouring ones.

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Five target areas have been identified for their potential, known as Area 1 through Area 5 (see Figure 20.1). For the program two phases of drilling have been proposed for Areas 1 and 2 and a single phase for Area 3. Drilling elsewhere will be deferred to future programs.

Area 1 drilling is designed to infill the Central Resource Area. This will provide better definition of current resources and new intersections of veins that presently are inadequately defined.

Drilling in Area 2 will provide new information about possible mineralization in the Southeast Extension area and is designed to add new mineral resources to the Curraghinalt deposit.

Area 3 drilling will provide deep intersections under the Central Resource Area and will help to define the down-dip continuity of the deposit. Due to earlier deviation issues with deeper holes at the Curraghinalt deposit, those holes will be drilled with hexagonal stabilized core barrels and extra stabilizers necessitating extra cost.

A summary of the budgeted costs for the proposed Curraghinalt exploration drill program is presented in Table 20.1.

Table 20.1 Curraghinalt Deposit Exploration Program

No. of Cost Activity Metres Holes (£) Area 1 - Phase 1 drilling 34 5,950 688,500 Area 1 - Phase 2 drilling 12 2,160 283,500 Area 2 - Phase 1 drilling 14 2,450 243,000 Area 2 - Phase 2 drilling 8 2,600 316,500 Area 3 - Phase 1 drilling 3 1,800 238,500 Contingency for extra drilling 132,750 Subtotal Drilling 71 14,960 1,902,750 Assaying 144,130 Logging and Sampling 271,763 Miscellaneous drill costs 1 151,253 Surveying and consultants 63,152 Metallurgical testwork and supervision 40,000 Resource update and scoping study 80,000 Grand Total 2,653,048 1 - Land owner costs and reparations, consumables, core boxes, etc. Note: Tables may not add up precisely due to rounding errors.

20.1.2 DG1 Licence Exploration

The proposed exploration program for the remainder of licence DG1 consists of a program of landowner public relations for access, followed by reconnaissance, geological mapping, sampling, relogging of old drill core and initial drilling of targets identified after geological compilation. Exploration work will be targeted at Rylagh, Alwories, Coneyglen and Golan Burn. Precise drill target locations will be chosen after completion of the initial exploration work.

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Figure 20.1 Curraghinalt Deposit Drilling Areas

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A summary of the budgeted costs for the proposed DG1 exploration program is presented in Table 20.2.

Table 20.2 Remainder of DG1 Exploration Program

No. of Cost Activity Metres Holes (£) Geological mapping and sampling 40,614 Drilling, 4 locations, 5 holes each 20 1,400 840,000 Assaying 2,400 Total 883,014

20.1.3 DG2 Licence Exploration

Proposed exploration at DG2 will concentrate on the priority targets Cashel Rock, Bonnety Bush, Beaghbeg, Greencastle and Crosh. Activities will include prospecting, reconnaissance electromagnetic geophysics (EM), geological mapping soil sampling and initial shallow drilling of targets generated. Precise drill target locations will be chosen after completion of the initial exploration work.

A summary of the budgeted costs for the proposed DG2 exploration program is presented in Table 20.3.

Table 20.3 DG2 Exploration Program

No. of Cost Activity Metres Holes (£) Field Exploration 77,678 EM targeting 40,395 Geophysics 34,200 Drilling TBD1 TBD1 328,116 Total 480,389 1 - The precise number of holes and their depth will be determined after completion of initial exploration and compilation of results.

20.1.4 DG3 and DG4 Licence Exploration

Smaller exploration programs, sufficient to maintain the licences, have been proposed for licences DG3 and DG4 (CEC licences TG-3 and TG-4). Activities will include prospecting, reconnaissance EM geophysics, geological mapping, soil sampling and initial shallow drilling of targets generated. Precise drill target locations will be chosen after completion of the initial exploration work.

A summary of the budgeted costs for the proposed DG3 and DG4 exploration programs is presented in Tables 20.4 and 20.5.

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Table 20.4 DG3 Exploration Program

No. of Cost Activity Metres Holes (£) Field Exploration 27,000 Geophysics 18,000 Drilling TBD1 TBD1 35,000 Total 80,000 1 - The precise number of holes and their depth will be determined after completion of initial exploration and compilation of results.

Table 20.5 DG4 Exploration Program

20.1.5 Summary

A summary of the exploration budgets for the five programs described above is presented in Table 20.6. Additional line items for shared costs of a baseline environmental study, public relations, social studies, management costs and local overheads as well as improvements to the office, logging and accommodation facilities have also been added.

Table 20.6 Exploration Program Summary

The budget presented is a base case scenario and may need to change as unforeseen factors in the field become known.

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20.2 SUMMARY RECOMMENDATIONS

The Curraghinalt gold deposit may be regarded as a mid-stage exploration project on which a reasonably-sized mineral resource of gold has been estimated. The data and observations provided in this report support the concept of further exploration and development of the deposit. The remainder of the four licence areas at the Tyrone project constitute a project at an earlier stage but upon which the known geology and initial exploration efforts are sufficiently encouraging to justify further work.

Dalradian Resources and Aurum have produced a proposed exploration plan and budget for the Curraghinalt gold deposit and the four mineral licence areas at the Tyrone project. In addition, a preliminary economic analysis (scoping study) has been proposed for the Curraghinalt deposit once the Curraghinalt deposit drilling is completed. Micon has reviewed the proposed exploration plans and budgets for the licences, described above and summarized in Table 20.6, and finds them to be reasonable and warranted in light of the observations made in this report. It is recommended that Dalradian Resources proceed with the programs.

This report, titled “A Mineral Resource Estimate for the Curraghinalt Gold Deposit and a Review of a Proposed Exploration Program for the Tyrone Project, County Tyrone and County Londonderry, Northern Ireland”, with an effective date of December 23, 2009, and prepared for Dalradian Resources, was completed by the following authors:

MICON INTERNATIONAL LIMITED

B. T. Hennessey {signed and sealed} “Dibya Kanti Mukhopadhyay” {signed}

B. Terrence Hennessey, P.Geo. Dibya Kanti Mukhopadhyay, M.Sc., MAusIMM Vice President Senior Mineral Resource Geologist Micon International Limited Micon International Limited

May 10, 2010 May 10, 2010

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21.0 REFERENCES

Boland, M. Curraghinalt, 1997. Gold Deposit Geology and Resource Status May 1997 - Updated Nov. 1997, Unpublished Report for Ulster Minerals Limited, Geological Survey of Northern Ireland.

Coller, D., 2007. Review of the Structure of the Curraghinalt Gold Vein System, prepared for Aurum Exploration Services, June, 2007.

CSA, 1997. Polygonal Resource Calculation of a 1.25 m Minimum Mining Width at the Curraghinalt Deposit, prepared for Ennex International, May, 1997.

Department of Enterprise, Trade and Investment, Minerals and Petroleum Exploration and Development in Northern Ireland, 1997-2000.

Donoghue, M. J., November, 2003. Curraghinalt Gold Deposit Review Report, prepared for Tournigan Gold.

Peatfield, G.R., 20, January, 2003. Updated Technical Review Report on the Tyrone Mineral Exploration Property (Prospecting Licences UM 11/96 and UM 12/96), County Tyrone, Northern Ireland, prepared for Tournigan Gold Corporation.

Mukhopadhyay, D. K., 2007. Technical Report on the Curraghinalt Property, County Tyrone, Northern Ireland, An NI 43-101 Technical Report for Tournigan Gold Corporation (now Tournigan Energy Ltd.), 87pp. Filed on SEDAR, www.sedar.com.

The Claim Group Inc., Base Line Land Audit, Northern Ireland, prepared for Tournigan Gold Corporation, March, 2007 (updated by Aurum Exploration Limited, May, 2007).

Tully, John V., January 27, 2005. Technical Review Report on the Curraghinalt Gold Property, Exploration License UM-1/02 (UM-11/96), County Tyrone, Northern Ireland, prepared for Tournigan Gold Corporation.

Strong D. F. (1981). Notes on Ore Mineralogy of the Buchans District. In The Buchans Orebodies: Fifty Years of Geology and Mining, The Geological Association of Canada Special Paper Number 22, E. A. Swanson, D. F. Strong and J. G. Thurlow editors.

Thurlow, J. G. and Swanson, E. A., 1981. Geology and Ore Deposits of the Buchans Area, Central Newfoundland. In The Buchans Orebodies: Fifty Years of Geology and Mining, The Geological Association of Canada Special Paper Number 22, E. A. Swanson, D. F. Strong and J. G. Thurlow editors.

Williams, V., July, 2007. Tournigan Gold Projects Co. Tyrone, Technical Presentation.

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Williams, V., (2008). Volume 1, Renewal Report, Licence UM-1/02 - Curraghinalt Licence, Period - 1st January 2006 to 31st December 2007. A report issued to the Department of Enterprise, Trade and Investment & Crown Mineral Agent for work completed by Dalradian Gold Limited /Aurum Exploration Ltd.

Williams, V., (2009). Technical Report (Renewal), Licence TG-3/03 (Newtownstewart East), Licence TG-4/03 (Sawel-Dart). A Report issued to the Department of Enterprise, Trade and Investment and the Crown Mineral Agent for work completed by Dalradian Gold Limited /Aurum Exploration Ltd.

Williams, V. and Archibald, S. M., (2009). Proposed Work Programme and Budget for VMS Exploration on DG2. An internal PowerPoint presentation to Dalradian Resources.

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CERTIFICATE OF AUTHOR B. TERRENCE HENNESSEY

As one of the authors of this report on certain mineral properties of Dalradian Resources Inc. in County Tyrone, Northern Ireland, I, B. Terrence Hennessey, do hereby certify that:

1. I am employed by, and carried out this assignment for

Micon International Limited Suite 900, 390 Bay Street Toronto, Ontario M5H 2Y2

tel. (416) 362-5135 fax (416) 362-5763 e-mail: [email protected];

2. I hold the following academic qualifications:

B.Sc. (Geology) McMaster University 1978

3. I am a registered Professional Geoscientist with the Association of Professional Geoscientists of Ontario (membership #0038); as well, I am a member in good standing of several other technical associations and societies, including:

The Australasian Institute of Mining and Metallurgy (Member) The Canadian Institute of Mining, Metallurgy and Petroleum (Member)

4. I have worked as a geologist in the minerals industry for 30 years;

5. I do, by reason of education, experience and professional registration, fulfill the requirements of a Qualified Person as defined in NI 43-101. My work experience includes 7 years as an exploration geologist looking for iron ore, gold, base metal and tin deposits, more than 11 years as a mine geologist in both open pit and underground mines and over 12 years as a consulting geologist working in precious, ferrous and base metals and industrial minerals. I have previous experience with mineral resource estimation;

6. I visited the Curraghinalt Property and had meetings with Aurum Exploration Services Ltd. and Dalradian Resources Inc. during the period November 6 and 7, 2009;

7. I am responsible for the preparation of Sections, 1 to 9, 14 (portions) 15 and 18 to 20 (portions) of the technical report titled “A Mineral Resource Estimate for the

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Curraghinalt Gold Deposit and a Review of a Proposed Exploration Program for the Tyrone Project, County Tyrone and County Londonderry, Northern Ireland”;

8. I am independent of the parties for which this report is prepared, as defined in Section 1.4 of NI 43-101, other than providing consulting services;

9. I have had no prior involvement with the mineral properties in question;

10. I have read NI 43-101 and the portions of this report for which I am responsible have been prepared in compliance with the instrument;

11. As of the date of this certificate, to the best of my knowledge, information and belief, the technical report contains all scientific and technical information that is required to be disclosed to make this report not be misleading.

Effective Date: December 23, 2009

Dated this 10th day of May, 2010.

{signed by} “B. Terrence Hennessey” {Sealed}

B. Terrence Hennessey, P.Geo. Vice President, Micon International Limited

126

CERTIFICATE OF AUTHOR DIBYA KANTI MUKHOPADHYAY

As one of the authors of this report on certain mineral properties of Dalradian Resources Inc. in County Tyrone, Northern Ireland, I, Dibya Kanti Mukhopadhyay do hereby certify that:

1) I am employed by, and carried out this assignment for

Micon International Co. Limited Suite 10, Keswick Hall Norwich, United Kingdom

tel. 0044(1603) 501 501 fax 0044(1603) 507 007 e-mail [email protected];

2) I hold the following academic qualifications:

B.Sc. Geology (Hons.) Jadavpur University, Kolkata, India 1991 M.Sc. (Applied Geology) Jadavpur University, Kolkata, India 1993

3) I am a member of the Australasian Institute of Mining and Metallurgy (Member # 225557); as well, I am a member in good standing with The Canadian Institute of Mining, Metallurgy and Petroleum (Member # 140645).

4) I have worked as a geologist in the minerals industry for almost 14 years;

5) I am familiar with NI 43-101 and, by reason of education, experience and professional registration, I fulfill the requirements of a Qualified Person as defined in NI 43-101. My work experience includes 3 years as an exploration geologist looking for gold, ferrous and base metal deposits, more than 3 years as a mine geologist in open pit and underground mines and 8 years as a surficial geologist and consulting geologist on precious and base metals and industrial minerals;

6) I have had no prior involvement with the mineral properties in question;

7) I am responsible for the preparation of Sections, 10 to 13, 14 (portions), 17 and 18 to 20 (portions) of the technical report titled “A Mineral Resource Estimate for the Curraghinalt Gold Deposit and a Review of a Proposed Exploration Program for the Tyrone Project, County Tyrone and County Londonderry, Northern Ireland”;

8) I am independent of the issuer applying the test in Section 1.4 of NI 43-101;

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9) I visited the Curraghinalt property between the 10th and 12th of August, 2007.

10) I have read NI 43-101 and the portions of this report for which I am responsible have been prepared in compliance with the instrument.

11) As of the date of this certificate to the best of my knowledge, information and belief, the technical report contains all scientific and technical information that is required to be disclosed to make this report not misleading;

Effective Date: December 23, 2009

Dated this 10th day of May, 2010.

“Dibya Kanti Mukhopadhyay” {signed}

------Dibya Kanti Mukhopadhyay, M.Sc., MAusIMM (#225557) Senior Mineral Resource Geologist, Micon International Limited

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22.0 APPENDICES

APPENDIX 1 Drill Hole Statistics for the Mineralized Intersections and Zone Codes

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Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 04-CT-24 58.72 59.82 19.4 1.1 20 04-CT-26 149.62 150.74 29.3 1.12 20 07-CT-53 78.63 78.86 41.9 0.23 20 90-02 33.72 34.25 31.8 0.53 20 90-03 36.12 37.43 31.4 1.31 20 90-04 66.26 66.45 32.5 0.19 20 90-06 75.71 75.96 2.6 0.25 20 90-10 113 114.12 2.5 1.12 20 90-11 33.48 33.82 13.9 0.34 20 07-CT-53 78.63 78.86 41.9 0.23 20 08-CT-54a 185.75 188.0 2.25 6.2 20 08-CT-56a 247.55 248.55 1.0 6.2 20 03-CT-06 24.9 25 4.7 0.1 30 03-CT-08 21.13 21.84 9.3 0.71 30 03-CT-09 46.06 47.51 2.3 1.45 30 04-CT-17 13.63 14.78 2.3 1.15 30 04-CT-23 62.24 62.67 2.3 0.43 30 04-CT-24 131.02 131.37 5.6 0.35 30 04-CT-25 40.57 41.25 9.2 0.68 30 04-CT-26 287.56 287.81 21.8 0.25 30 06-CT-35 49.91 51.16 19.6 1.25 30 07-CT-50 212.04 212.3 13.9 0.26 30 106-1 23.04 25.25 6.2 2.21 30 106-4 23.74 24.08 30 0.34 30 90-30 24.71 25.61 19.1 0.9 30 90-31 33.2 33.45 15.1 0.25 30 08-CT-54a 376.25 376.50 0.7 0.25 30 08-CT-55 175.88 176.03 17.4 0.15 30 08-CT-56a 274.02 275.02 19.3 1.0 30 08-CT-57 349.25 349.60 2.0 0.40 30 07-CT-53 107.78 108.03 3.4 0.25 35 07-CT-53 141.49 142.74 3.1 1.25 35 106-11 8.15 8.79 6.7 0.64 35 106-3 36.96 37.03 30.7 0.07 35 5170-10 55.4 56.1 29.1 0.7 35 90-05 93.45 93.84 27.9 0.39 35 03-CT-05 87.01 88.85 5 1.84 40 03-CT-06 146.41 147.8 9.2 1.39 40 03-CT-07 78.73 81.74 6.1 3.01 40 03-CT-09 157.07 158.05 3.1 0.98 40 03-CT-10 61.5 62.77 37.7 1.27 40 04-CT-14 42.94 47 42.7 4.06 40 04-CT-16 74.75 77.9 8.3 3.15 40 04-CT-17 133.05 133.55 4.2 0.5 40

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Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 04-CT-19 109.93 110.65 2.1 0.72 40 04-CT-20 61.3 62.35 19.4 1.05 40 04-CT-22 30.5 33.32 52.8 2.82 40 04-CT-23 145.25 145.91 9.3 0.66 40 04-CT-23 149.2 151.4 6.4 2.2 40 04-CT-26 416.16 417.73 56.3 1.57 40 106-16 57.28 57.87 95 0.59 40 106-24 42.15 44.32 28 2.17 40 106-27 45.14 47.92 28.9 2.78 40 106-28 34.38 36.6 31.2 2.22 40 106-42 46.8 47.27 49.1 0.47 40 106-43 35 35.38 1.6 0.38 40 106-44 23.8 24.25 93.1 0.45 40 106-45 45.41 47.09 44.4 1.68 40 106-58 19.35 20.05 2.3 0.7 40 106-6 27.85 28.25 57.5 0.4 40 106-8 67.12 69.87 50.9 2.75 40 106-87 46.13 46.95 7 0.82 40 106-90 89 89.5 19.7 0.5 40 5170-13 1.5 1.6 108.3 0.1 40 5170-14 20.57 21 27.4 0.43 40 5170-17 6.9 7 23.8 0.1 40 90-12 102.18 103.59 33 1.41 40 90-15 82.16 82.3 18.6 0.14 40 90-16 90.5 91.55 32.2 1.05 40 90-30 164.27 165.48 17.2 1.21 40 90-37 81.84 82.46 7.4 0.62 40 90-41 71.4 72.15 24.4 0.75 40 90-49 124.83 125.5 4.6 0.67 40 90-50 111.05 112.15 3.9 1.1 40 07-CT-53 370.04 370.73 20.9 0.69 40 08-CT-54a 449.78 451.98 3.20 3.2 40 08-CT-55 350.15 351.25 24.1 1.1 40 08-CT-56a 522.50 524.00 7.8 1.5 40 08-CT-57 447.95 448.45 6.0 0.5 40 03-CT-01 30.8 32.6 3.1 1.8 45 06-CT-29 108.41 108.71 3.9 0.3 45 06-CT-35 102.43 103.13 8 0.7 45 06-CT-36 87.57 87.96 5 0.39 45 06-CT-37 70.32 70.98 8.4 0.66 45 06-CT-38 18.75 18.82 14.1 0.07 45 06-CT-41 25.1 25.3 5 0.2 45 06-CT-43 54.73 56.5 5 1.77 45 07-CT-42 31.81 32.85 2.3 1.04 45 07-CT-50 234 235.07 2.3 1.07 45

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Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 03-CT-05 106.97 108.44 27 1.47 50 03-CT-07 106.35 108.63 0.5 2.28 50 03-CT-10 87.75 87.9 6.1 0.15 50 03-CT-11 51.59 52.42 5.5 0.83 50 04-CT-12 47.05 49.41 15.6 2.36 50 04-CT-13 39.59 43.02 68.1 3.43 50 07-CT-42 87.99 89.43 2.74 1.44 50 106-10 18.38 18.54 13.6 0.16 50 106-23 4.9 5.45 10.6 0.55 50 106-25 24.53 25.7 5.6 1.17 50 106-27 68.22 68.6 4 0.38 50 106-49 94.49 94.69 8.1 0.2 50 106-53 21.1 21.4 45.2 0.3 50 106-54 61.89 62.28 21.4 0.39 50 106-55 69.87 70.04 19.8 0.17 50 106-6 48.58 49.21 41.2 0.63 50 106-8 91.65 91.87 18.2 0.22 50 106-87 66.43 66.7 18.5 0.27 50 5170-15 40.5 40.74 17.5 0.24 50 5170-6 74 74.4 34.5 0.4 50 03-CT-01 87.9 89.16 5 1.26 55 03-CT-02 52.5 53.7 12.6 1.2 55 03-CT-04 62.3 62.95 12.2 0.65 55 03-CT-05 123.75 123.98 4.3 0.23 55 03-CT-06 172.59 172.99 1.5 0.4 55 03-CT-07 109.06 111.25 0.7 2.19 55 04-CT-15 52.35 53.21 2.4 0.86 55 04-CT-15 52.35 53.21 2.4 0.86 55 04-CT-23 170.06 170.78 5.8 0.72 55 04-CT-24 235.68 236.68 2.3 1 55 06-CT-30 84.07 84.57 1.3 0.5 55 06-CT-31 23.77 25.02 7.5 1.25 55 06-CT-36 148.27 148.91 4.7 0.64 55 06-CT-37 137.98 138.98 9.3 1 55 06-CT-38 90.44 91.86 12.8 1.42 55 06-CT-40 17.15 17.82 1.1 0.67 55 06-CT-41 108.62 109.64 20.4 1.02 55 06-CT-43 166.23 166.92 5.4 0.69 55 07-CT-42 137.91 138.91 6.2 1 55 07-CT-44 80.39 81 1.5 0.61 55 07-CT-45 42.17 42.27 4.1 0.1 55 07-CT-46 37.9 38.95 1.7 1.05 55 07-CT-47 130.95 132.01 5.5 1.06 55 07-CT-48 80.09 81.09 5.3 1 55 07-CT-50 287.12 288.16 7.7 1.04 55

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Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 106-10 46.6 46.69 26.5 0.09 55 106-11 88.62 88.78 6.3 0.16 55 106-12 67.6 68.41 5.8 0.81 55 106-14 85.56 85.8 5 0.24 55 106-17 85.61 87.09 14.9 1.48 55 106-18 40.49 41.63 5.6 1.14 55 106-27 75.29 75.41 17.4 0.12 55 106-48 129.06 129.23 85.8 0.17 55 106-61 22.9 23.12 4.8 0.22 55 106-63 63 63.3 7.1 0.3 55 106-9 19.12 19.72 49.5 0.6 55 106-94 21.4 21.77 29.5 0.37 55 106-95 65.7 66.05 57 0.35 55 106-96 50.7 50.81 1.2 0.11 55 106-97 79.7 80.73 12.2 1.03 55 106-99 43.22 43.45 113.8 0.23 55 03-CT-01 120.87 121.05 28.2 0.18 60 03-CT-02 64.59 67.24 3.4 2.65 60 03-CT-05 146.07 147.74 22 1.67 60 03-CT-08 186.69 187.86 9.7 1.17 60 03-CT-10 115.72 117.14 8.4 1.42 60 03-CT-11 99.78 100.95 23.1 1.17 60 04-CT-12 78.27 79 6.6 0.73 60 04-CT-15 80.23 81.25 0 1.02 60 04-CT-16 126.65 128.01 9.2 1.36 60 04-CT-23 200.89 202.03 12.5 1.14 60 04-CT-24 268.53 268.87 0.6 0.34 60 06-CT-29 159.8 161.08 65.7 1.28 60 06-CT-30 114.61 114.71 21.6 0.1 60 06-CT-31 64.94 66.35 5.6 1.41 60 06-CT-32 58.78 58.88 29.1 0.1 60 06-CT-34 21.6 23.66 23 2.06 60 06-CT-35 187.15 187.34 13.4 0.19 60 06-CT-36 167.35 168.35 7.6 1 60 06-CT-38 116.43 117.18 5.3 0.75 60 06-CT-40 35.37 36.02 7.3 0.65 60 06-CT-41 126.16 127.35 1 1.19 60 07-CT-45 48.84 50.19 6.9 1.35 60 07-CT-50 338.42 339.14 6.4 0.72 60 106-100 61.98 63.35 9.8 1.37 60 106-102 43.36 43.5 111.8 0.14 60 106-11 111.33 113 8.1 1.67 60 106-12 85.04 85.55 19.8 0.51 60 106-13 87.5 88.12 57.2 0.62 60 106-14 107.9 108.07 3.7 0.17 60

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Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 106-15 80.5 82.11 13.6 1.61 60 106-16 116.6 116.88 22.4 0.28 60 106-18 68.08 69.74 10.9 1.66 60 106-22 67.15 67.32 33.8 0.17 60 106-23 37.76 38.9 18.6 1.14 60 106-25 69.74 69.85 5.9 0.11 60 106-26 72.66 72.91 2 0.25 60 106-28 97 97.9 3.3 0.9 60 106-29 64.52 64.93 14.9 0.41 60 106-5 47.62 48.27 20.8 0.65 60 106-52 70.52 71.02 11.1 0.5 60 106-53 76.95 78.96 48.7 2.01 60 106-54 109.57 110.17 9 0.6 60 106-55 113.38 113.84 24.3 0.46 60 106-6 81.4 83.2 12.2 1.8 60 106-63 70.31 70.56 2.2 0.25 60 106-66 38.28 38.33 13 0.05 60 106-68 47.03 48.38 8.5 1.35 60 106-8 123.71 124.77 14.5 1.06 60 106-82 16.3 16.6 11.1 0.3 60 106-87 99.1 99.3 5.3 0.2 60 106-90 145.42 145.56 13.5 0.14 60 106-91 89 89.1 20.2 0.1 60 106-93 12.9 13.6 46.1 0.7 60 106-95 93.55 94.06 99 0.51 60 106-96 77.22 77.38 13.2 0.16 60 106-97 106.59 106.93 15.2 0.34 60 106-99 64.31 66.78 14.5 2.47 60 90-12 168.95 169.77 28 0.82 60 90-14 99.53 100.11 3 0.58 60 90-41 127.75 128.33 2.9 0.58 60 90-43 87 90 17.3 3 60 raise 0.5 8.4 20.6 7.9 60 raise 46.5 49.75 2.4 3.25 60 07-CT-53 430.07 431.12 66.90 1.05 60 08-CT-54a 542.13 543.13 18.8 1.0 60 08-CT-55 565.47 566.67 4.0 1.2 60 08-CT-56a 632.75 633.30 6.0 0.55 60 08-CT-57 570.07 570.32 5.1 0.25 60 03-CT-08 189.47 191.45 0.9 1.98 61 04-CT-16 137.45 138.32 9.3 0.87 61 04-CT-17 203.36 204.68 14.4 1.32 61 106-13 92.64 92.82 15.3 0.18 61 106-16 127.31 127.94 90.2 0.63 61 106-23 38.9 39.4 0.5 0.5 61

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Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 106-25 70.71 71.17 1.8 0.46 61 106-27 113.42 113.69 14.2 0.27 61 106-28 107.14 107.47 29.2 0.33 61 90-12 171.71 172 7.3 0.29 61 90-41 139.63 139.78 42.8 0.15 61 04-CT-15 102.82 103.82 9.3 1 62 04-CT-17 209.57 209.89 4.6 0.32 62 106-13 107.21 107.64 15.8 0.43 62 106-16 152.36 152.61 3.5 0.25 62 106-25 91.67 91.92 19.3 0.25 62 106-26 104.23 104.43 10.8 0.2 62 106-29 74.76 74.9 13.9 0.14 62 106-62 53.36 53.51 119.8 0.15 62 106-66 47.9 48 1.4 0.1 62 106-85 53.86 54.19 6 0.33 62 106-91 93.6 93.73 141.3 0.13 62 90-14 122.05 123.72 9.6 1.67 62 90-43 103.41 103.54 14.5 0.13 62 03-CT-01 161.7 163.25 7.3 1.55 70 03-CT-02 95.28 95.57 7.7 0.29 70 03-CT-03 121.36 122.56 9.8 1.2 70 03-CT-04 102.65 102.83 11.4 0.18 70 03-CT-11 167.08 168.44 6.5 1.36 70 04-CT-12 144.3 145.63 11.4 1.33 70 04-CT-15 114.7 114.84 5.3 0.14 70 04-CT-15 145.88 148.14 8.6 2.26 70 04-CT-15 145.88 148.14 8.6 2.26 70 04-CT-23 269.57 270.67 6.2 1.1 70 04-CT-24 341.73 342.78 2.8 1.05 70 06-CT-29 195.42 197.54 2.2 2.12 70 06-CT-30 151.91 152.52 6.6 0.61 70 06-CT-31 102.48 102.79 3.5 0.31 70 06-CT-32 99.93 100.11 12.5 0.18 70 06-CT-33 61.71 62.71 15.4 1 70 06-CT-34 61.89 62.05 38.6 0.16 70 06-CT-36 199 199.74 7.1 0.74 70 06-CT-37 185.52 186.17 2.7 0.65 70 06-CT-38 145.03 145.74 1.6 0.71 70 06-CT-39 113.28 113.67 0.8 0.39 70 06-CT-40 63.38 64.94 1.1 1.56 70 06-CT-41 145.71 146.78 3.2 1.07 70 06-CT-43 196.3 197.96 9 1.66 70 07-CT-42 163.35 163.43 9.48 0.08 70 07-CT-45 78.65 79.16 8.1 0.51 70 07-CT-46 69.7 70.35 1.2 0.65 70

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Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 07-CT-47 178 179.86 6.3 1.86 70 07-CT-48 126.22 127.46 3.5 1.24 70 07-CT-49 89.41 90.11 2.5 0.7 70 07-CT-50 346.52 348.09 4.8 1.57 70 106-101 22.95 23.15 30.5 0.2 70 106-102 107.38 107.82 69 0.44 70 106-105 42.46 42.86 34.8 0.4 70 106-106 76.85 77 78.8 0.15 70 106-106 78.3 78.91 12.6 0.61 70 106-107 67.15 67.43 39 0.28 70 106-108 59.2 59.85 10.5 0.65 70 106-108 63.7 64 20.8 0.3 70 106-15 117.8 119.7 6.7 1.9 70 106-16 174.63 175.49 9.8 0.86 70 106-17 113.04 113.89 16.9 0.85 70 106-18 106.91 107.07 6.1 0.16 70 106-19 41.5 43.52 24 2.02 70 106-22 118.48 119.53 6.2 1.05 70 106-24 163.12 163.61 13 0.49 70 106-29 127.84 129.42 18.6 1.58 70 106-60 65.1 65.9 83.3 0.8 70 106-61 58 58.25 12.7 0.25 70 106-62 86.36 86.93 42.4 0.57 70 106-64 54 54.55 16.1 0.55 70 106-66 87.2 88.37 32.9 1.17 70 106-67 21.25 21.5 20.6 0.25 70 106-68 101.58 101.97 9.4 0.39 70 106-70 67.35 67.69 27.6 0.34 70 106-71 43.5 43.67 65 0.17 70 106-72 89.17 89.32 6.4 0.15 70 106-74 52.4 52.6 17 0.2 70 106-80 43.74 44.36 19 0.62 70 106-81 34.32 34.62 68 0.3 70 106-82 68 68.67 58.9 0.67 70 106-83 32.9 34.75 9.7 1.85 70 106-84 32 33 2.6 1 70 106-85 92.35 93.32 16.7 0.97 70 106-88 43.02 43.35 122.5 0.33 70 106-89 109.8 112.2 46.4 2.4 70 106-91 124.35 125.4 7.5 1.05 70 106-95 144.25 146.53 12.8 2.28 70 106-96 124.64 126.21 4.5 1.57 70 106-97 158.8 159.6 15.8 0.8 70 106-98 92.1 92.9 24.2 0.8 70 106-99 126.9 127.12 17.8 0.22 70

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Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 90-41 194.65 195.2 7.8 0.55 70 90-43 138.39 139.03 4.3 0.64 70 07-CT-53 444.79 445.79 27.40 1.00 70 08-CT-55 615.67 618.92 16.9 3.25 70 08-CT-57 630.06 630.31 20.2 0.25 70 03-CT-01 177.28 180.22 7.7 2.94 75 03-CT-02 120.37 120.47 15.4 0.1 75 06-CT-29 213.59 214.59 6.5 1 75 06-CT-30 154.16 155.54 6.5 1.38 75 06-CT-31 106.22 108.99 6.1 2.77 75 06-CT-32 106.88 108.12 10.6 1.24 75 06-CT-33 70.53 71.19 10.9 0.66 75 06-CT-35 232.56 232.63 8.5 0.07 75 06-CT-37 218.17 218.47 2.4 0.3 75 06-CT-39 133 133.98 4.7 0.98 75 06-CT-40 89.89 91.64 11.6 1.75 75 106-103 61 61.5 9.6 0.5 75 106-107 81.81 82.05 9.7 0.24 75 106-108 106.57 107.4 29.9 0.83 75 106-15 136.28 136.53 1.6 0.25 75 106-94 108.5 109.6 27.1 1.1 75 06-CT-37 233.08 234.1 14 1.02 80 06-CT-40 122.05 123.13 10 1.08 80 07-CT-49 149.9 150 7.1 0.1 80 106-19 59.96 60.09 4.3 0.13 80 106-71 54.1 54.64 32.4 0.54 80 03-CT-04 167.46 168.72 3.6 1.26 90 06-CT-40 172.98 173.75 2.2 0.77 90 07-CT-45 175.27 177.59 20.7 2.32 90 07-CT-49 173.52 174.88 5.3 1.36 90 106-59 33.44 33.59 60.8 0.15 90 03-CT-06 39.6 40.37 16.7 0.77 302 03-CT-08 40.95 41.28 1.4 0.33 302 04-CT-17 38.06 38.68 5.6 0.62 302 04-CT-23 69.75 70.35 0.7 0.6 302 04-CT-24 156.69 156.94 4.6 0.25 302 03-CT-08 123.24 126.88 2.5 3.64 403 04-CT-15 10.65 11.7 46.6 1.05 403 04-CT-26 407.86 408.02 6.3 0.16 403 106-46 24.67 25.67 1 1 403 106-47 14.78 15.42 1.9 0.64 403 106-50 25.18 26.95 94 1.77 403 106-6 10.7 10.81 4.1 0.11 403 90-12 101.03 101.15 0.5 0.12 403 90-30 163.66 163.8 1.5 0.14 403

137

Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 90-47 101.55 102.2 9.4 0.65 403 03-CT-02 44.8 45 6.3 0.2 552 03-CT-03 64.6 65.6 8.1 1 552 06-CT-36 141.18 141.5 4.3 0.32 552 06-CT-41 87.4 88.8 2.1 1.4 552 07-CT-42 111.33 112.33 1.3 1 552 106-17 57.05 57.12 1.4 0.07 552 06-CT-29 146.26 146.35 10.3 0.09 601 06-CT-31 48.67 48.79 2.4 0.12 601 06-CT-32 53.85 53.97 22.2 0.12 601 06-CT-34 18.07 18.22 22.5 0.15 601 06-CT-36 156.96 157.99 16.7 1.03 601 106-15 67.15 67.6 7.5 0.45 601 106-94 44.94 45 2.6 0.06 601 106-95 91.5 91.72 9.2 0.22 601 106-96 67.2 67.54 59.8 0.34 601 106-97 101.68 101.96 19.9 0.28 601 106-98 32.45 32.95 25.8 0.5 601 06-CT-29 168.91 169.15 2.9 0.24 604 06-CT-30 124.56 124.92 1.6 0.36 604 06-CT-31 72.22 72.3 11 0.08 604 06-CT-32 62.86 65.41 5.8 2.55 604 06-CT-33 39.87 40.17 15.4 0.3 604 06-CT-34 28.76 28.93 28.9 0.17 604 06-CT-35 192.75 192.82 1.8 0.07 604 06-CT-36 180.21 180.6 3.7 0.39 604 06-CT-37 172.08 173.06 4.3 0.98 604 06-CT-38 120.89 121.56 7.5 0.67 604 06-CT-39 82.42 83.47 9.1 1.05 604 106-14 111.25 111.36 5.3 0.11 604 106-18 71.74 72.24 0.3 0.5 604 106-94 61.3 61.46 115 0.16 604 106-95 107.58 110.06 11.1 2.48 604 04-CT-24 297.88 298.84 3.6 0.96 605 106-11 117.02 117.14 4.1 0.12 605 106-9 49.87 50.03 27.8 0.16 605 106-93 20.5 20.75 14.6 0.25 605 04-CT-24 305 306 1.9 1 606 106-10 85.2 85.3 23 0.1 606 106-106 21.15 21.56 24 0.41 606 106-11 138.48 138.6 2.1 0.12 606 106-53 89.94 90.3 14.9 0.36 606 106-54 120.02 120.14 19.8 0.12 606 106-6 85.22 85.46 3 0.24 606 106-8 128.23 128.83 6.7 0.6 606

138

Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 03-CT-05 127.2 127.9 1.6 0.7 607 03-CT-11 84.46 85.53 5.1 1.07 607 04-CT-12 59.59 60.67 13.7 1.08 607 04-CT-23 192.1 193.28 10.4 1.18 607 106-10 59.49 61.39 22.7 1.9 607 106-23 26.5 26.57 1.6 0.07 607 106-92 9.18 9.36 38.3 0.18 607 06-CT-29 185.73 186.98 8.4 1.25 701 06-CT-32 80.8 81 4 0.2 701 06-CT-33 58.5 58.62 3.1 0.12 701 06-CT-34 45.88 46.27 7.1 0.39 701 06-CT-38 129.26 130.1 0.4 0.84 701 06-CT-39 87 87.14 4.1 0.14 701 06-CT-40 42.47 43.48 5.5 1.01 701 07-CT-44 97.55 98.15 0.6 0.6 701 07-CT-49 61.36 62.4 8.3 1.04 701 07-CT-50 345.55 345.74 9 0.19 701 106-14 136.43 137.53 2.3 1.1 701 106-15 107.43 108.5 109 1.07 701 106-17 100.51 101.26 1.5 0.75 701 106-18 91.18 92.23 4.3 1.05 701 106-95 139.2 140.05 54.6 0.85 701 03-CT-03 112.32 115.15 12.4 2.83 703 03-CT-04 89.53 90.14 7.5 0.61 703 07-CT-44 101.48 101.95 5.6 0.47 703 07-CT-46 67.85 67.95 0.6 0.1 703 07-CT-48 125.8 126 1.7 0.2 703 07-CT-49 82.45 83.45 11.6 1 703 106-101 40.55 41 11.7 0.45 708 106-108 71.55 72 5.3 0.45 708 106-16 180.16 181.71 11.2 1.55 708 106-68 107.28 107.57 5.5 0.29 708 106-73 68.52 69.82 7.7 1.3 708 106-74 56.93 57.14 17.5 0.21 708 90-41 199.02 199.55 10.6 0.53 708 03-CT-01 186.78 188.18 5 1.4 752 06-CT-30 167.97 168.15 11.4 0.18 752 06-CT-31 121.57 122.45 5.1 0.88 752 06-CT-33 79.29 79.87 7.8 0.58 752 06-CT-35 54.71 55.09 16 0.38 302E 07-CT-50 226.56 227.05 2.5 0.49 302E 106-1 35.66 35.81 7.2 0.15 302E 106-2 68.69 70 13.7 1.31 302E 06-CT-36 90.63 90.85 14.2 0.22 451E 06-CT-41 38 38.4 0.2 0.4 451E

139

Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 06-CT-43 108 108.48 2.82 0.48 451E 07-CT-47 78.93 79.67 5.3 0.74 451E 03-CT-07 103.62 104.4 12.3 0.78 451W 04-CT-17 135.11 138.05 0.4 2.94 451W 106-66 7.97 8.3 0.1 0.33 451W 90-43 62 62.75 27 0.75 451W 04-CT-20 78.01 78.38 6.3 0.37 45W 106-22 41.45 42.92 15.5 1.47 45W 106-29 23.14 25.86 9.7 2.72 45W 106-58 42.5 42.6 33.5 0.1 45W 106-91 33.87 34.04 6.4 0.17 45W 90-13 145 145.59 5.1 0.59 45W 90-43 55.52 57.1 14.1 1.58 45W 106-30 28.55 29.78 5.6 1.23 D 106-31 37.75 38.62 17.9 0.87 D 106-32 31.87 35.14 13.5 3.27 D 106-33 28.8 31.39 9.2 2.59 D 106-77 28.2 28.3 0.18 0.1 D 106-78 62 62.5 7.4 0.5 D 90-24 74.45 74.74 8.8 0.29 D 90-26 79.25 79.48 53.2 0.23 D 90-27 121.64 123.2 31.5 1.56 D 90-28 39.58 39.72 12 0.14 D 90-29 68.8 69.15 12.2 0.35 D 90-32 109.65 110.67 38.2 1.02 D 90-34 75.25 75.3 25 0.05 D 90-36 54.57 55.8 9.2 1.23 D 90-40 79.01 79.8 18.9 0.79 D 90-42 113.9 115.2 4.5 1.3 D 90-44 29.5 30.36 6.6 0.86 D 90-45 73.08 74.5 14.3 1.42 D 90-46 116.55 117.2 11.4 0.65 D 90-48 147.2 147.7 30.3 0.5 D 90-52 63 63.43 19.4 0.43 D 90-54 76.7 76.93 9.7 0.23 D 106-30 35.35 36.08 14.9 0.73 G 106-32 45.22 45.54 0.1 0.32 G 90-19 123.06 124.3 13.9 1.24 G 90-25 97.26 97.54 12.9 0.28 G 90-26 92.8 93.09 64.3 0.29 G 90-27 142.87 143.04 18.6 0.17 G 90-29 74.75 75.29 54.6 0.54 G 90-32 114.6 114.8 28.2 0.2 G 90-36 66.61 66.84 5.1 0.23 G 90-39 56.1 58.74 5.6 2.64 G

140

Borehole Grade Zone From To Intersection (m) No. (g/t Au) Code 90-40 98.22 98.9 12.9 0.68 G 90-44 40.66 40.84 27.5 0.18 G 90-45 83 83.5 22.4 0.5 G 90-48 160.75 161.09 12.3 0.34 G 90-51 159.78 160.59 23.8 0.81 G 90-52 74.55 74.9 56.8 0.35 G 90-56 71.8 72.04 3.4 0.24 G

141

Appendix 2

Block Model Validation

Comparison Plots for Drill Hole Data to Resource Model Block Grades

142

Figure A1 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 20

Figure A2 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 30

143

Figure A3 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 35

100 )

10 Block Model DataBlock Model Au (gm/t

1 1 10 100 De-clustered Drill hole Data (gm/t Au)

Figure A4 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 302

100 ) 10

1 Block Model Data (gm/t Au (gm/t Data Model Block

0.1 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

144

Figure A5 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 302E

100 )

10 Block Model Data (gm/t Au (gm/t Data Model Block

1 110100 De-clustered Drill hole Data (gm/t Au)

Figure A6 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 40

145

Figure A7 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 45

10 ) 1

0.1 Block Model DataBlockModel Au (gm/t

0.01 0.01 0.1 1 10 De-clustered Drill hole Data (gm/t Au)

Figure A8 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 403

1000

100 ) 10

0.1 Block Model Data (gm/t Au (gm/t Data Model Block

0.01

0.001 0.001 0.01 0.1 1 10 100 1000 De-clustered Drill hole Data (gm/t Au)

146

Figure A9 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 451E

10 ) 1

0.1 Block Model Data (gm/t Au (gm/t Data Model Block

0.01 0.01 0.1 1 10 De-clustered Drill hole Data (gm/t Au)

Figure A10 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 451W

100

10 )

1 Block Model DataBlockModel Au (gm/t

0.1

0.01 0.01 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

147

Figure A11 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 50

100 ) 10

1 BlockModel Data (gm/tAu

0.1 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

Figure A12 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 50E

100

10 )

1 Block Model Data (gm/t Au

0.1

0.01 0.01 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

148

Figure A13 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 55

100

10 )

0.1 Block Data Model Au (gm/t

0.01

0.001 0.001 0.01 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

Figure A14 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 552

10 )

1 Block Model DataAu Block(gm/t Model

0.1 0.1 1 10 De-clustered Drill hole Data (gm/t Au)

149

Figure A15 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 60

Figure A16 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 61

100 ) 10

1 Block Model Data (gm/t Au (gm/t Data Model Block

0.1 0.1110100 De-clustered Drill hole Data (gm/t Au)

150

Figure A17 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 62

100 ) 10

1 Block Model Data (gm/t Au (gm/t Data Model Block

0.1 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

Figure A18 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 601

100 ) 10

1 Block Model Data Au Block Model (gm/t

0.1 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

151

Figure A19 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 604

100 ) 10

1 Block Model Data (gm/t Au (gm/t Data Model Block

0.1 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

Figure A20 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 605

10 ) 1

0.1 Block Model DataBlock Model Au (gm/t

0.01 0.01 0.1 1 10 De-clustered Drill hole Data (gm/t Au)

152

Figure A21 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 606

10 ) 1

0.1 Block Model Data (gm/t Au (gm/t Data Model Block

0.01 0.01 0.1 1 10 De-clustered Drill hole Data (gm/t Au)

Figure A22 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 607

100 ) 10

1 Block Model DataAu BlockModel (gm/t

0.1 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

153

Figure A23 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 70

Figure A24 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 75

100

10 )

1 Block Model DataBlock Au Model (gm/t

0.1

0.01 0.01 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

154

Figure A25 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 701

100

10 )

0.1 Block Model Data (gm/t Au

0.01

0.001 0.001 0.01 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

Figure A26 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 703

100

10 )

1 Block Model Data (gm/t Au

0.1

0.01 0.010.1110100 De-clustered Drill hole Data (gm/t Au)

155

Figure A27 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 708

100

10 )

1 Block Model DataBlock Model Au (gm/t

0.1

0.01 0.01 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

Figure A28 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 752

10 ) 1

0.1 Block Model Data (gm/t Au

0.01 0.01 0.1 1 10 De-clustered Drill hole Data (gm/t Au)

156

Figure A29 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 80

100 ) 10

1 Block Model Data Au (gm/t Block Model

0.1 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

Figure A30 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone 90

100 )

10 Block Model Data (gm/t Au (gm/t Data Model Block

1 110100 De-clustered Drill hole Data (gm/t Au)

157

Figure A31 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone D

100 ) 10

1 Block Model Data (gm/t Au

0.1 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

Figure A32 Comparison of De-Clustered Drill hole Data to Resource Model Block Grade for Zone G

100

Block Model Data (gm/t Au) 0.1

0.01 0.01 0.1 1 10 100 De-clustered Drill hole Data (gm/t Au)

158